Exor: Positive Portfolio Changes Support Continued Buy Rating

Summary

• Exor’s FY24 performance was uninspiring, with Stellantis dragging down the very strong contribution from Ferrari.
• Recent actions—reducing Ferrari concentration, executing a large buyback, and increasing Philips exposure—strengthen my investment case for Exor.
• Exor’s current share price implies a discount to adjusted NAV of slightly greater than 50%, well above the historic discount level of ~30%.
• Taking a medium-term view, I expect that the market will recognize the upside opportunity and eventually push Exor’s share price closer to the value of its underlying holdings.

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Introduction

In late 2024, I reviewed Exor N.V. (OTCPK:EXXRF) and landed on a Buy rating, based largely on my expectation that the stock’s wide gap to its net asset value (‘NAV’) would eventually close. The

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This writing is for informational purposes only. All opinions expressed herein are not investment recommendations, and are not meant to be relied upon in investment decisions. The author is not acting in an investment advisor capacity and is not a registered investment advisor. The author recommends investors consult a qualified investment advisor before making any trade. This article is not an investment research report, but an opinion written at a point in time. The author's opinions expressed herein address only a small cross-section of data related to an investment in securities mentioned. Any analysis presented is based on incomplete information, and is limited in scope and accuracy. The information and data in this article are obtained from sources believed to be reliable, but their accuracy and completeness are not guaranteed. Any and all opinions, estimates, and conclusions are based on the author's best judgment at the time of publication, and are subject to change without notice. Past performance is no guarantee of future returns.