Conpet confirmed at HOLD, TP RON 86 - Piping amid an energy price spike
We maintain our HOLD recommendation revising it downwards due to higher operating expenses than forecast and lower domestic quantities transportedDespite the lower domestic quantities transported, we believe the tariffs will be raised further by the regulator in order to maintain a stable revenue growth and we estimate an increasing trend in imported volumes transported
We believe the inflationary outlook of the Romanian economy leads to an increase in operating expenses, implying a decreasing EBIT margin, estimated to reach 15% in 2023e
Conpet remains an attractive dividend stock, assuming for the projected period 2021e-23e a pay-out ratio at around 95%
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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