Talgo: Expect weak 9M17 results due to delays in sales to Saudi Arabia
Talgo: Expect weak 9M17 results due to delays in sales to Saudi Arabia
- Talgo’s 9M17 results out on 15th November
- We estimate a drop in sales and earnings
- Pushing back sales estimates to 2018
- We adjusting our target price to €5.52
We have adjusted our target price to €5.52 (from €5.71) to reflect (1) the delay in the delivery of the trains that cuts–€0.11 from the target price and (2) the increase in the shares in issue following a dividend scrip that was paid in 3Q17 that cuts an additional –€0.08.
Our Hold recommendation is unchanged.
Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.
Bankinter S.A. is a Spanish brokerage firm established in 1989. The company's line of business includes the provision of market research and trading services for Equity and Fixed Income products.
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