Edison Issues Outlook on DeA Capital (DEA)

DeA Capital has continued to be active in its direct investment portfolio in the opening months of FY17, returning to direct investment with a stake in a newly created and listed special purpose acquisition vehicle and a further reduction in its Migros stake. Q117 also saw further growth in AUM and a positive investment performance. Returning growth momentum to asset management and a diverse investment portfolio have the potential to create further value. Meanwhile the prospect of cash inflows as private equity fund investments mature provides a measure of protection against any rise in market volatility.

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

Our updated sum-of-the-parts (SOP) valuation at €1.88 (ex the recently paid €0.12 FY16 dividend) is little changed. Compared with the Q117 NAV per share of €1.96 (ex div), it replaces the book value of asset management with our estimated fair market value based on a peer comparison and it values the residual stake in quoted Migros at market. The 37% share price discount continues to appear conservative given the new momentum in asset management, the diversity of its investment portfolio and the potential for investment realisations.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website: http://www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Learn more at http://www.edisongroup.com and connect with Edison on:  

LinkedIn: https://www.linkedin.com/company/edison-investment-research

Twitter: http://www.twitter.com/Edison_Inv_Res

YouTube: http://www.youtube.com/edisonitv

For more information please contact Edison:
Martyn King, +44(0)20-3077-5745
Andrew Mitchell, +44(0)20-3681-2500
financials@edisongroup.com