Belron-Led Value and Upcoming IPO Optionality Drive Upside in Undervalued D’Ieteren Holding

D’Ieteren SA, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst David Kerstens from Jefferies upgraded the rating on the stock to a Buy and gave it a €215.00 price target.

David Kerstens has given his Buy rating due to a combination of factors tied primarily to the strength and visibility of D’Ieteren’s core asset, Belron. He highlights that Belron now represents roughly three-quarters of D’Ieteren’s net asset value and continues to show strong operational momentum, with margins having expanded substantially over recent years and further improvements targeted by 2028, supported by mid- to high-single-digit revenue growth. He also notes that Belron’s business model benefits from structural drivers such as increasing windscreen complexity and the rise of value-added products, which underpin both profitability and long-term growth. In addition, the analyst raises his valuation of Belron by lowering the discount rate to reflect ongoing deleveraging after the recent shareholder consolidation, and he points out that the implied multiple is consistent with recent private equity transactions and listed peers.

Kerstens also takes into account the potential for a liquidity event at Belron through an IPO in the second half of 2026, which could crystallize value and provide greater transparency around the asset’s worth. While private equity holders may use such an event to monetize part of their stake, D’Ieteren is expected to keep control, preserving its exposure to Belron’s future upside. On a sum-of-the-parts basis, he calculates a notably higher net asset value for D’Ieteren and observes that the shares currently trade at a sizeable discount to this estimate. Maintaining a holding-company discount in line with historical levels, he arrives at a new, higher price target that still implies solid upside from current levels, which supports his decision to recommend the stock as a Buy.