Our target price is virtually unchanged following the review of our assumptions post the H1 results. The valuation boost from our estimated NAV, thanks to the inclusion of a fifth division (CHS), was counterbalanced by the slightly lower DCF and multiple-based valuation due to lower earnings expectations in FY21-22.
Nonetheless, we are encouraged by the strategic shift, prioritising organic growth above bolt-on acquisitions. As a result, we have removed our assumption for a future capital increase of €100m, as we believe Chargeurs' organic growth ambitions will be primarily funded by internal resources. We see this change, made viable (at least in part) by the accomplishments made in H1, as a clear positive for shareholders.