Morgan Stanley | We reduced our estimates of EBITDA FY19 for Acerinox by 7%, by reducing our estimates between 2Q-4T as a result of the loss in the revaluation of inventories.
This loss was caused by the fall in commodity prices during 2Q-3T as well as slightly weaker shipments in the automotive segment. For the publication of results of the 2Q we expect an increase of the net debt in 100 million euros resulting in a DN / EBITDA of 1.3x. After this adjustment we reduced our target price by 1% to € 8.7 / share. In valuation Acerinox quotes at 8.0x EV / EBITDA vs. historical average of 7.5x. We reiterate the EW.