The Magnum Ice Cream Company: Short-Term Pain After Separation Merits A Hold
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Felipe Brum, CFA200 FollowersFollow5ShareSavePlay(17min)CommentsSummaryMagnum Ice Cream Company is now a standalone, pure-play ice cream leader with 21% global market share after its spin-off from Unilever.MICC targets 4–5% growth, slightly above the market, via innovation, premiumization, and international expansion, but faces low barriers to entry and intense local competition.Free cash flow is expected to be depressed until 2028–2029, with potential selling pressure from Unilever's 19.9% stake and legacy shareholders.I assign a Hold rating to MICC, citing near-term earnings and FCF headwinds from €3B in new debt and substantial one-off separation costs.Getty Images On December 8th, The Magnum Ice Cream Company (MICC) started trading in Amsterdam, London, and New York, following its spin-off from Unilever (UL). The company is now a fully focused ice cream company carrying allThis article was written byFelipe Brum, CFA200 FollowersFollowCFA Charterholder looking for value and GARP ideas with a long term mindset in play.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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.