Milan, Italy – Exor N.V.’s recent stock performance has faced some challenges since April. Despite reporting a consolidated income of €4.2 billion in 2023, along with a notable NAV per share increase of 32.7%, the company’s stock price has not met expectations. Several factors contributed to our initial buy rating on Exor, including ongoing buybacks, investments in companies like Philips, and the strong performance of Stellantis and Ferrari.

One reason for maintaining a positive outlook on Exor is its continued investments in the healthcare sector. Recently, the company decided to increase its stake in Philips, demonstrating confidence in the Dutch medical device company. The move to step up investments in Philips aligns with Exor’s strategic direction and long-term goals in the healthcare industry. Additionally, Exor’s sizable stake in Stellantis, which announced positive projections for 2024, contributes to the overall optimism surrounding the company’s future performance.

Ferrari, a prominent asset within Exor’s portfolio, made headlines by announcing plans to open a new e-factory for the production of electric cars. The introduction of this facility highlights Ferrari’s commitment to innovation and growth, with expectations of increased deliveries and improved margins. This development also influenced our decision to raise our dividend per share estimate for the following year, reflecting anticipated growth and profitability for Ferrari under Exor’s ownership.

In light of Exor’s diverse holdings, including Iveco and CNH Industrial, the company’s potential for significant shareholder distribution in 2025 appears promising. By strategically aligning its capital allocation priorities and shareholder remuneration policies, Exor aims to maximize returns for its investors. The recent restart of a share buyback program further underscores the company’s commitment to enhancing shareholder value and capitalizing on growth opportunities in the market.

Furthermore, Exor’s Ventures arm plays a vital role in identifying and investing in early-stage companies with high growth potential. Recent investments in startups like Viaduct and Zeliq demonstrate Exor’s strategic focus on technology and innovation, aligning with the company’s long-term vision and commitment to fostering growth in emerging industries.

Overall, Exor’s strong performance, strategic investments, and commitment to shareholder value position the company for continued success. With a target price of €113 per share, Exor’s current valuation presents an attractive opportunity for investors seeking exposure to a diverse portfolio with growth potential. Despite potential risks associated with operational performance and market trends, Exor’s solid foundation and strategic approach provide a compelling case for investment.