OHLA: LIGHT AT THE END OF THE TUNNEL; CHANGE OF RECOMMENDATION TO BUY (ANÁLISIS BANCO SABADELL)
A more attractive risk-reward profile. We raise our T.P. and change our recommendation to BUY.Its recent bond restructuring has improved the company’s financial profile (reducing NFD by €-175 M), which in addition to the sale of Hospital de Toledo and Old War Office will allow it to close 2021 with € 55 M of net cash BS(e) and focus on operating performance and FCF generation (positive from 2023 BS(e)). We see a risk of overhang stemming from the investment funds that exchanged bonds (~20% of OHLA) and the outcome of lawsuits (€~1.3 Bn worth of claims against the company vs. € 1.06 Bn in favour), although for the time being the rulings/partial resolutions have been favourable for the company (€+170 M; not included in our T.P.). We raise our estimates by +3.4% in EBITDA’21-23 and our T.P. by +33% to € 0.80/sh. (+38% upside) based on a more upbeat stance on the Construction business, and change our recommendation to BUY.
Obrascon Huarte Lain is an international concession and construction groups based in Spain. Co. maintains significant operations in 30 countries across all five continents. Co. is engaged in hospital and railway construction, transport infrastructure concessions, oil and gas, energy, solids handling and fire protection systems and international contracts. Co.'s operations are organized along four divisions: OHL Concesiones, OHL Construccion, OHL Industrial y OHL Desarrollos. Co. is also engaged in real state project developments of mixed use managed by the international hotel chains.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.