Waberer’s - Beats On The Cards
 With a compelling 130% upside potential to our new TP of 1,910 HUF/sh (vs. our prev. estimate of 1,785 HUF/sh) based on our earnings estimates, we keep our positive stance on Waberer’s and maintain our BUY rating on the stock. We hold our view that Waberer’s is deeply undervalued and we see asymmetric risk/reward at this point. We believe that this time is perfect for any strategic investors to make an offer for Waberer’s’ Regional Contractual Logistics (RCL) business and its non-core insurance unit. Especially insurance business looks in a very attractive to buy, but RCL might be also an exciting investment in light of its expanding activity across the region.
 Consistent with our previous view, we stress that Waberer’s has valuable assets including RCL and non-core insurance business, but recovery in its International Transportation segment (ITS) seems very slow, as it is hit severely by the COVID-19 pandemic. That said, the Polish Link (which is part of ITS) has already recuperated, achieving positive profit margins in recent quarters. This points to the relative weakness of the Budapest-based ITS.
Waberer's International Nyrt, formerly Waberer's International Zrt, is a Hungary-based company engaged in the provision of the transportation services in the region of Central and Eastern Europe. The Company provides international road transportation, forwarding of LTL and groupage cargo, overseas and air transportation management, customs services, vehicle repair, second hand vehicle sales and logistics services. The Company operates also through subsidiaries, including Waberer's Logisztika Ltd that is charge of domestic transportation activities and operates with four divisions - gas, food, dry-cargo transportation and large truck operation, and H-Rapid service that operates within the dry-cargo division, delivering freight to its destination within 24 hours. Waberer's International Nyrt manages also subsidiaries in Romania, Poland and Slovakia as well as in the western region, in Spain and Germany.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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