AmRest confirmed at HOLD, TP PLN 21.0 - Eastern headwinds slow down the margin recovery path
AmRest confirmed at HOLD, TP PLN 21.0 - Eastern headwinds slow down the margin recovery pathFollowing the suspension of activities in Russia we lower our target price for AmRest to PLN 21 (PLN27.5) and confirm our HOLD recommendation
AmRest achieved impressive milestones in FY 21 with 150 gross store openings and a 550bps EBITDA margin expansion, however new headwinds from the East could hinder a smooth continuation of the recovery
Russian operations have been suspended on March 9 with little visibility on a return to business as usual
In the mid-term we expect the interrupted recovery to continue, and we project 22-24e CAGR of 7.5% for the top line and 10.5% for EBITDA
AmRest is a holding company. Through its subsidiaries, Co. is an international fas-foods and casual dining restaurant operator in Central and Eastern Europe. Co. has been building a portfolio of well recognized power brands such as KFC, Pizza Hut, Burger King, Applebee's and Starbucks based on solid franchise and joint venture partnerships. Co. owns La Tagliatella brand which is being developed as Co. operated restaurants as well as franchised stores. Co. operates almost 700 category Quick Service and Casual Dining restaurants. Co. is based in Wroclaw and operates in Poland, Czech Republic, Hungary, Russia, Bulgaria, Serbia, Croatia, Spain, France and the United States.
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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