BGC PARTNERS - ARCELIK UPGRADED TO BUY
• A good entry point, upgrading to BUY… We have revised forecasts to reflect a stronger revenue and EBITDA than before, but 7% lower earnings in 2018E to account for higher financial costs. We have also revisited our DCF to reflect the higher market rates. Our new 12-mth price target of TL22.3/sh is 7% lower than before. However, given the poor performance of the shares (4% underperformance YTD), we foresee a 12-mth total return potential of 27% (incl. 4% dividend yield), and upgrade Arcelik to BUY from HOLD. The company is trading at a c19% and c17% discount to its historical forward P/E and EV/EBITDA respectively, according to Bloomberg consensus. This is a good entry point to gain exposure to this blue-chip with a global expansion strategy and relative immunity to volatility in the Turkish market with over 60% of business outside TurkeyArcelik is engaged in the commercial and industrial activities in respect of the production, sales and marketing, customer services after sales, exportation and importation of consumer durable goods and consumer electronics. Co. has two segments: white goods reportable segment, which comprises washing machines, dryers, dish washers, refrigerators, ovens, cookers and the services provided for these products; and the consumer goods reportable segment, which comprises televisions primarily with flat screens, computers, cash registers, other electronic devices and the services provided to consumers for these products.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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