Stifel has reiterated its 'buy' recommendation on ALD, with an adjusted target price of €20 to €19, following the presentation by the vehicle rental group of a strategic plan for 2026 that it deems 'prudent and realistic'.

While this plan is perfectly in line with its estimates for growth and gains in vehicle value, the broker has lowered its EPS forecasts for 2023 and 2024, to take into account higher restructuring costs.

Nevertheless, Stifel considers ALD to be 'fundamentally undervalued', pointing out that it 'is the leader in its market and benefits from highly recurring service and rental margins, as well as a very favorable second-hand market'.

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