AMAG confirmed at HOLD, TP EUR 36 - Model update: Raising FY 22e post strong Q2
AMAG released sound Q2 results where a better than expected underlying earnings generation was masked by negative one-off effectsThe management gave a more optimistic FY 22 EBITDA guidance of EUR 220-250 mn, up from the post-Q1 outlook of above EUR 200 mn
With the top end of the range implying a flat H2 yoy and thus baking in quite a slowdown vs. H1 we think the company can over-deliver. We continue to assume that AMAGs earnings will peak in the current year.
Given AMAGs high domestic energy consumption, interruptions of the Russian gas deliveries to Austria currently pose the main risk to the investment case
We maintain the HOLD recommendation and have trimmed the target price to EUR 36 from EUR 38.5
AMAG Austria Metall is a holding company, engaged in the production of primary aluminum, as well as cast and rolled aluminum products. The metal division is responsible for the risk management and steering of the metal flows. The casting division recycles aluminum scrap to produce foundry alloys. Its product portfolio covers aluminum materials tailored to customer requirements in the form of ingots, sows and liquid aluminum. The rolling division is responsible for the production and sale of rolled products, and precision cast and rolled plates. The service division include facility management, energy supplies, waste disposal, and purchasing and materials management.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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