STK [BUY +27.7%] - Capacity expansion, recycled yarn to fuel growth - Update
  • 2021-05-17T21:18:35
  • Company Research
We reiterate BUY and raise our TP by 28% thanks to (1) our incorporation of STK’s new factory (‘Unitex’), (2) a 50-bp reduction in our house cost of equity to 12.5%, (3) an increase in debt in our target capital structure due to a new capex cycle, and (4) a rollover of our TP to mid-2022.