Pitch: European specialty food ingredients company that has partially disposed one segment and intends to distribute cash to shareholders (c. 12% of market cap). The refocused remaining business is less cyclical and benefits from trends of healthy eating and focus on non-meat products, positioning the company as a takeover candidate. Freed up capital will provide flexibility to invest in operational revamp as well as take advantage of inorganic /organic growth opportunities.
Valuation: TATE.L trades around 17xPE for 2023 with peers at 25x.
Exp. gain: 40% upside to the valuation of key competitors and 50%+ upside in an acquisition scenario.
Full TATE.L write-up (free guest account required):