Jefferies upgraded D’Ieteren Group to a “buy” rating, lifting its price target to €215 from €185, citing a potential initial public offering of its largest holding, Belron. The upgrade, offering 20% upside from the current share price of €181.30, focuses on Belron, which accounts for 72% of D’Ieteren’s net asset value.

Belron, a global leader in vehicle glass repair, is in early talks for a listing in the second half of 2026, potentially in Amsterdam or New York, with an indicative enterprise value of €32 billion. Private equity owners, including CD&R, Hellman & Friedman, Blackrock, and GIC, collectively control approximately 40% of shares, while D’Ieteren aims to retain a majority stake.

Jefferies increased its enterprise valuation of Belron by 12% to €30 billion, reflecting successful deleveraging following a September 2024 shareholder consolidation partly funded through a €4.2 billion Belron dividend. Belron has improved profitability from a 5.4% EBIT margin in fiscal 2017 to 21.2% in fiscal 2024, driven by increasing windscreen complexity related to Advanced Driver Assistance Systems.

Belron targets further margin expansion to greater than 25% by fiscal 2028, with revenue growth in the mid-to-high single digits. D’Ieteren shares trade at a 37% discount to Jefferies’ sum-of-the-parts net asset value of €283.4, up from €243.6 previously, indicating significant potential for growth and investment interest.