Bureau Veritas' Investor Day Reaffirms Our Positive Outlook for the TIC Sector

Narrow-moat Bureau Veritas’ investor day offered more of a recap on the company’s pivot in direction over the last few years than a revolutionary glimpse into the future. Perhaps this, coupled with the announcement that the company’s systems are only now 80% operational following a cyber security attack almost two weeks ago, has led to the slightly negative share price reaction Dec. 3. While there was little in the way of new information for us in the presentation, we did welcome the company firming up some financial metrics and targets, such as the commitment to pay out 50% of adjusted net profit to shareholders. We reiterate our EUR 23 fair value estimate, however, and believe the shares are overvalued at this time.