1 hr ago
Avalon Technologies Shares Jump After Zollner Joint Venture
Avalon Technologies is starting a new business partnership with Zollner.
Zollner is a German company that builds complicated electronic products.
The partnership will first help Avalon’s customers in India.
It will provide local support and put production closer to those customers.
Avalon also hopes to gain more international customers through the partnership.
The companies may expand into healthcare, lifesciences, semiconductors, and testing equipment.
Nomura believes this could improve Avalon’s future growth and profit margins.
Nomura estimates the partnership could invest about $30 million to $50 million.
Because of this outlook, Avalon’s shares rose 6% and Nomura increased its price target.
Avalon Technologies shares rose 6% after announcing a joint venture with Germany-based Zollner.
The venture will initially support the Indian operations of existing customers with localization and closer proximity.
Avalon expects the partnership to help it add global customers and expand into Europe.
The joint venture will target complex manufacturing areas including healthcare, lifesciences, semiconductors, and test instruments.
Nomura raised its target price to Rs 2,767, implying 23% upside, and retained its Buy rating.
- Who
- Avalon Technologies, Zollner, and Nomura.
- What
- Avalon and Zollner are forming a joint venture, prompting a 6% rise in Avalon’s shares and a higher Nomura price target.
- Where
- The joint venture will initially serve Indian operations, while Zollner is headquartered in Germany and the venture may expand into Europe.
- When
- The article does not specify the trading date; Nomura rolled its valuation forward to December 2027 from September 2027.
- Why
- The partnership is intended to provide localization and proximity for customers, add global customers, enter new manufacturing verticals, and support European expansion.
Key facts
- Share move
- Avalon Technologies shares rose 6%.
- Nomura target price
- Rs 2,767, implying 23% upside from current levels.
- Rating
- Nomura maintained its Buy rating.
- Estimated investment
- The joint venture is expected to invest $30 million to $50 million; Nomura used a midpoint estimate of $40 million.
- Zollner footprint
- Zollner is headquartered in Germany and has operations across 17 international locations.
- Zollner 2025 revenue
- Nomura cited estimated 2025 revenue of $3.7 billion for Zollner.
- Estimated EPS impact
- Using its assumptions, Nomura estimated the joint venture could increase Avalon’s FY29F EPS by 21%.
Quotes
Nomura
Brokerage firm covering Avalon Tech
“For Avalon, its capability expands further into complex EMS such as medical and test instruments and goes deeper into the semiconductor ecosystem.”
businesstoday.in
“The stock is currently trading at 35x FY29F EPS which is attractive given the outlook. We maintain our Buy rating,”
businesstoday.in
Sources
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