DAVY VIEW

XP Power (XPP) has received several bids from US-listed peer Advanced Energy over the last eight months. The latest is a 1950p, all cash offer made on May 7th 2024. This was again rejected by the XPP Board. The unwillingness of XPP to engage has caused Advanced Energy to go public with its bid. We agree with the XPP Board that 1950p significantly undervalues XPP’s recovery potential – it equates to 9.3x our CY25E EV/EBITDA, a 50% discount to Advanced Energy’s own valuation. We reiterate our 12-month price target of 2,530p and expect further bidding interest.