Report
Panagiotis Kladis, CFA
EUR 300.00 For Business Accounts Only

ATHENS EXCHANGE | All-weather

We upgrade our recommendation to ‘Buy’ despite the downward revision of our estimates and our TP (to EUR 4.60 from EUR 5.40 previously) in view of the ensuing uncertainty about Greece’s economic prospects. We believe the recent weakness offers a good entry point and an attractive risk-reward profile, taking into account the merits of the investment case. In this note we examine a couple of scenarios to show that the downward risks are rather limited, while the upside potential offers scope for higher returns than our current estimates imply.

AthEx currently trades at an attractive valuation, at a 20% discount to peers (vs 8% 5yr avg discount) in EV/EBITDA terms on our conservative set of estimates, while our TP implies a 34% upside. We are of the view that AthEx’s lean structure offers downside protection when it comes to operating performance and leverage potential for the future given its relatively inelastic nature, while we note that management remains committed to keep distributing the vast majority of the group’s FCF.
Underlying
Hellenic Exchanges SA

The Hellenic Exchanges is engaged in the following business sectors: trading, clearing, settlement, data feed, IT, exchange services, depository services, clearinghouse services, and other.

Provider
Eurobank Equities
Eurobank Equities

Eurobank Equities is a Greek-based firm offering research, sales and trading services to institutional, corporate and private clients. The company is wholly owned by Eurobank, one of the 4 systemic banks in Greece.

Research is the backbone of Eurobank Equities' platform, with a team of 4 professionals committed to generating actionable investment ideas by providing timely research products. We are committed to offering value-added services to clients by filtering market noise and providing insights on the multiple sectors that we cover. Our universe includes 26 - large, medium and small cap - companies whose market capitalization amounts to 80-85% of the total market capitalization of the Athens Stock Exchange. Our research team also maintains the capacity to generate ad-hoc research for micro-cap listed companies.

Our team has consistently gained recognition among institutional investors for its quality research, having ranked No. 1 team in Greece at the Extel Surveys of 2013-2016 and 2018. We have also been named Leading Brokerage Firm in Greece over 2014-2016 and in 2018.

Analysts
Panagiotis Kladis, CFA

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