Spinoff Report
NELES FH & MOCORP FH: Valuation Mismatch Leads to Post-Spin MP Entry, +57% Upside
Yesterday was the first day of trading following the unique European Spin-Merger between Metso Corp. (MEO1V FH) and Outotec Corp. (OTE1V FH). This transaction created what is now Neles Corp. (NELES FH) and Metso Outotec Corp. (MOCORP FH), and the resulting valuation mismatch provides an opportunity for investors to see value creation for the Spin-merged mining equipment services company. Meanwhile, NELES (Parent) looks fully valued. Read on for more on their first day's performance.

  • NELES FH (Parent) Opened Close to Base Case / Near-Term Upside Priced In
  • Pure-Play Flow Control Equipment / Leader in Pulp & Paper Valves Market
  • Spin-Merged MOCORP FH has Healthy Backlog Providing Revenue Visibility
  • Valuation Mismatch Provides Entry Level in MOCORP / +57% Base Case Upside
  • MOCORP FH Enters the Model Portfolio with a +5% Weighting at the End of Tomorrow's (July 3) VWAP
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