EDISON INVESTMENT RESEARCH LIMITED (LON:KEFI) Edison Investment Research Limited: VivoPower International (VVPR): Initiation - EV platform for growth
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Edison Investment Research Limited
London, UK, 30 March 2021
VivoPower International (VVPR): Initiation - EV platform for growth VivoPower is building a sustainability orientated business focused on decarbonisation of the economy, through electric transportation and renewable energy generation services. The move into electric vehicles through the acquisition of Tembo is a step-change. It brings significant growth potential in a niche market while VivoPower's scale and presence has already delivered a transformational deal to this new activity. This will be augmented by the existing Critical Power division and development of an additional suite of energy management services. Our DCF valuation stands at $19 a share (13% WACC). The key delta is inevitably the fortunes of Tembo. The primary variable is the growth rate. Our DCF assumes sales of 5,000 vehicles in 2025 but a change of 1,000 vehicles has an impact on our valuation of c $5 a share, highlighting the high level of sensitivity at this early stage in Tembo's development. Further risks/sensitivities come from the ramp-up of production including manufacturing, supply chain and logistics. Click here to view the full report or here to sign up to receive research as it is published.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. 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. For more information, please contact Edison: David Larkam +44 (0)20 3077 5700 industrials@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
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