Last close As at 05/08/2026
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Market capitalisation
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Research: Industrials
PIERER Mobility has announced that it is seeing encouraging strength in several major markets as it emerges from the constrained environment of lockdowns. It is seeing share gains in the US motorcycle market, as well as strong demand for e-bike demand across its main European market. It has returned to full production following the production halt in Austria and is increasing staff numbers to meet the stronger demand. We maintain our forecast for now given continuing uncertainty, but the news of improving demand seems encouraging for the path to financial recovery.
Written by
PIERER Mobility |
On the road out of lockdown |
Post lockdown update |
Automobiles & parts |
29 May 2020 |
Share price performance
Business description
Analyst
PIERER Mobility is a research client of Edison Investment Research Limited |
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PIERER Mobility has announced that it is seeing encouraging strength in several major markets as it emerges from the constrained environment of lockdowns. It is seeing share gains in the US motorcycle market, as well as strong demand for e-bike demand across its main European market. It has returned to full production following the production halt in Austria and is increasing staff numbers to meet the stronger demand. We maintain our forecast for now given continuing uncertainty, but the news of improving demand seems encouraging for the path to financial recovery.
Year end |
Revenue (€m) |
EBIT* (€m) |
EPS* |
DPS |
P/E |
Yield |
12/18 |
1,462 |
128.7 |
1.82 |
0.30 |
22.0 |
0.8 |
12/19 |
1,520 |
131.7 |
2.42 |
0.30 |
16.5 |
0.8 |
12/20e |
1,431 |
72.8 |
1.01 |
0.30 |
39.6 |
0.8 |
12/21e |
1,698 |
132.3 |
2.07 |
0.30 |
19.3 |
0.8 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
PIERER Mobility has today announced that in the first five months of the year, and despite the COVID-19 lockdowns and its own mitigation measures, it is seeing encouraging developments. It says that after the end of the shutdown in various regions it is seeing ‘surprisingly’ strong development of motorcycle demand, especially in the US where KTM and HUSQVARNA are experiencing strong share gains. In addition, the e-bikes division with its HUSQVARNA and R RAYMON brands has benefited from the boom in demand for all things pedal powered in Europe during lockdown. It has experienced double-digit sales growth for the first five months of the year.
Having resumed output at its main facility in Mattighofen in Austria earlier this month, it has now returned to full production. With short-time working arrangements now ended, PIERER is increasing staffing levels to meet the stronger demand and is hiring 70 new employees and recruiting 45 new apprentices. The full-time headcount will increase to over 4,000 globally, higher than before the production halt that started in March 2020. We suspect that the renewed public interest in personal transport and cycling generally should sustain the positive momentum if the pandemic remains under control.
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Research: Healthcare
RedHill is now promoting Aemcolo for travellers’ diarrhoea (since December 2019), Talicia for H. pylori eradication (since March 2020) and the most recent addition, Movantik, for opioid-induced constipation (acquired from AstraZeneca on 1 April 2020). Movantik is an established product and AstraZeneca reported 2019 sales of $96m in the US, so it is a significant addition to RedHill’s portfolio. In April, the company booked $7.3m Movantik sales, which seems a good result given this was the peak month of the COVID-19 pandemic. Promotion of the novel drugs, Talicia and Aemcolo, is affected by the ongoing pandemic and RedHill had to postpone certain promotional activities, but we believe the potential of these drugs is intact. Our valuation is $593m or $16.5 per ADS.