On Monday, Berenberg initiated coverage on AutoStore Holdings Ltd (AUTO:NO) with a Buy rating, accompanied by a price target of NOK15.00. The firm highlighted AutoStore's position as the global market leader in cubic storage solutions. These automated storage and retrieval systems (AS/RS) are utilized within warehouses and logistics centers to enhance efficiency and storage capacity.
The cubic storage solutions provided by AutoStore are notable for their modular design, which allows for four times the storage density compared to manual warehouses, as well as delivering faster picking speeds. This innovative approach to warehouse management has positioned AutoStore as a key player in the logistics industry.
Berenberg's analysis indicates that AutoStore's valuation is attractive, especially when considering the company's long-term growth potential. The firm's forecast points to a valuation of 11 times the 2025 expected enterprise value to earnings before interest, tax, depreciation, and amortization (EV/EBITDA). This metric underscores the financial health and profitability of AutoStore, with the firm noting that the company has best-in-class EBITDA margins.
The decision to set a price target of NOK15.00 is based on these financial indicators and the company's market-leading position. Berenberg's coverage initiation reflects a positive outlook on AutoStore's future performance and its role in the evolving landscape of logistics and warehousing solutions.
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