March 23, 2018 / 1:59 PM / a year ago

BUZZ-Industrial conglomerates set for more spinoffs - Melius

** Melius Research expects trend to “de-conglomerate” among industrial cos to accelerate, noting that analysts typically “way under-value” a spinoff in sum-of-the-parts analysis of diverse cos

** “The lack of interest in traditional conglomerates seems to have become more acute,” Melius’ Scott Davis says in research note, adding that “when we do get calls on them it’s normally just to discuss potential portfolio moves”

** Industrial spins including their parent cos have averaged almost 1.5X turns of P/E multiple expansion on a pro-forma basis two years after the split, according to Melius

** General Electric, United Technologies, Honeywell among the cos weighing breakups or are in the process of doing so

** Shares of Siemens’ medical equipment spinoff, Siemens Healthineers, are up about 13 pct from their issue price following their Mar 16 debut

** YTD, S&P 500 industrials sector down 2.1 pct vs 0.9 pct drop for broader S&P 500

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below