INDRA: ON THE RIGHT TRACK (ANÁLISIS BANCO SABADELL)
Recovery is on track. We raise our estimates and T.P., and reiterate BUY.The continued recovery of the company’s businesses and its solid 2Q’21 results lead us to raise our estimates by +3.2% in sales and +4.9% in EBIT for 2021, and by around +4.0% in sales and +10% in EBIT over the 2022-24e period. As a result, we raise our T.P. up to € 11.80/sh. (+23% upside, +24% vs. our previous valuation). We reiterate our BUY recommendation based on: (i) its appealing multiples with an 8% FCF yield and 9.1x EV/EBIT vs. >11x peers); (ii) a financial situation under control (1.2x NFD/EBITDA’21e), and the fact that we expect the company to resume its shareholder remuneration policy (around 1.2% yield’21e); (iii) a record-high order backlog; and (iv) catalysts such as the awarding of new projects (FCAS, participation in Next Gen projects, etc.).
Indra Sistemas is engaged in the design, development, manufacture, assembly, repair, and installation of computer software and applications. Through its subsidiaries, Co. is engaged in consulting, graphic design and multimedia, web design and marketing, internet development and electronic trade, systems integration and hosting geared business to business and business to consumer, as well as in internet financing and electronic marketing. Co. serves defense and security, transport and traffic, energy and industry, telecom and media, finance and insurance, and public administration and healthcare markets. Co. operates primarily in Europe, the United States, Canada, and Latin America.
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