Aerojet Rocketdyne (AJRD), mcap=$4bn, price $49.12 vs $40.39

$AJRD pitch:
– The last remaining independent Aerospace & Defence supplier likely to be acquired in the near term.
– A highly strategic asset that is in discussions with multiple interested acquirers – a number of signs/tell that $LHX is one of the interested parties.
– Trades below peer and its own historical multiples.
– The underlying business structure and FCF cadence are misunderstood by the market.
– $LMT attempted to take it private at $56/share (Dec’20), but was eventually blocked by FTC.
– Activists own nearly 25% of the company.

$AJRD valuation:
– Trades at a 20%-30% discount to the peer group.
– Two years ago $LMT tried to take AJRD private at $56/share.

Exp. gain: Not specified.

Full write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/AEROJET_ROCKETDYNE_HOLDINGS/0425403833

Published on: November 15, 2022  •  Published by:
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