Asia / Pacific
Stonegate Capital Partners Updates Coverage on Electro Optics Systems Holdings Ltd (EOS)
• EOS announced a divestment of its EM Solutions segment in November 2024 for $144.0M to Cohort, a UK-based company.
• The transaction triggers the repayment of EOS’s current debt facility.
• Post-closing, EOS had approximately $128.0M in cash on the balance sheet and zero debt outstanding.
• The transaction is viewed as accretive to EOS’s gross margin and expected to provide sufficient liquidity for growth.
• EOS saw a year-over-year revenue growth of 9%.
• The DCF analysis suggests a valuation range of AUD$2.09 to AUD$2.21, with a midpoint of AUD$2.15.
