Bankinter S.A. - Talgo (TLGO SM) We expect 1H17 results to disappoint. Downgrade to Hold, new TP â‚¬5.71

Report

Bankinter S.A.

Pedro Echeguren

EUR 100.00 For Business Accounts Only

We expect 1H17 results to disappoint. Downgrade to Hold, new TP â‚¬5.71

We expect sales to have taken a hit in 2Q17 as manufacturing for Saudi Arabia slows down. The client has not completed the Mecca - Medina maintenance centre and is unable to take delivery of the trains.

For 1H17e we expect sales of €201mn, a –33% drop from 1H16 reflecting lower sales in MEA and Kazakhstan. We expect €45mn EBITDA, down –21% from 1H16 and €31mn (–30%) for the PBT €24mn net profit (–30%). Lower manufacturing should help to turn the equity free cash flow to positive, this is a plus point for the 1H17e results.

We believe that the results will disappoint and expect selling pressure after the announcement. We are downgrading our recommendation to Hold (from Buy). Our target price is cut to €5.71 from €5.88 reflecting the push back in the cash flows associated to the Saudi client.

17/07/2017 9 EN

Underlying

Talgo

See profile

Spain

Provider

Bankinter S.A.

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.

See profile

Analysts

Pedro Echeguren

Other Reports on these Companies

Reig Jofre: EBITDA maintains its growth in 1H20 (+40%) driven by sales (+25%) and cost efficiencies

Reig Jofre: EBITDA maintains its growth in 1H20 (+40%) driven by sales (+25%) and cost efficiencies Growth in sales and EBITDA fuelled by the COVID-19 effect and the Bioibérica acquisition The key features are organic growth of +10%, a higher EBITDA margin and the COVID-19 vaccine Valuation

July 29, 2020 July 29, 2020 17 EN

Pedro Echeguren

Pedro Echeguren

Reig Jofre: EBITDA increased +43% in 1Q20 fuelled by sales (+26%) and a higher EBITDA margin

Growth in sales and EBITDA accelerated in 1Q20 fuelled by the COVID-19 effect The key features are organic growth of +10%, a higher EBITDA margin and lower capex Valuation

May 13, 2020 May 13, 2020 16 EN

Pedro Echeguren

Pedro Echeguren

Reig Jofre: EBITDA (adj.) +17% in 2019 and guidance is 2x in a five-year plan

Growth in sales and adjusted EBITDA accelerated in 2019 after a strong 4Q19 Higher margins coupled to lower capex in the coming years to boost free cash flow Valuation

March 12, 2020 March 12, 2020 16 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

We expect 1H17 results to disappoint. Downgrade to Hold, new TP â‚¬5.71

Reig Jofre: EBITDA maintains its growth in 1H20 (+40%) driven by sales (+25%) and cost efficiencies

Reig Jofre: EBITDA increased +43% in 1Q20 fuelled by sales (+26%) and a higher EBITDA margin

Reig Jofre: EBITDA (adj.) +17% in 2019 and guidance is 2x in a five-year plan

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe