We initiate coverage of Exor with a Buy recommendation (30.6% upside potential).

Exor is a leading investment holding company controlled by the Agnelli/Elkann family, it is quite transparent as it is oriented towards large listed investments. It opts for a control/hands-on type of approach, being closely implicated in the management of its large assets through an active participation on the boards of directors and in decision-making.

It is currently present in the reinsurance business (PartnerRe, 100%), the automotive industry (FCA, 28.98%, and Ferrari, 22.91%), the agricultural and construction equipment business (CNH Industrial, 26.9%), publishing (The Economist Group, 43.4%) and professional football (Juventus Football Club, 63.77%)

Our key takeaways :

  • Holding company controlling FCA, CNH, Ferrari through minority stakes and 100% of PartnerRe a reinsurer
  • 70% of gross assets are listed, i.e. very easy to read
  • Dividend RECEIVED were coming from PartnerRe historically but the Auto side is taking over (FCA special div on Magneti’s disposal)
  • 34% discount to NAV is worth going for, much higher than similar family held biggish holding companies
  • Not attractive in terms of yield though

To access the full initiation research study : click here