Report
Akif Dasıran
EUR 10.00 For Business Accounts Only

Arcelik (ARCLK TI) - Robust results hint to a better 2H20: Upgrading to Buy

Arcelik posted TRY407m net income in 2Q20, beating RT consensus of TRY358m and our estimate of TRY310m. Resilient results in 2Q20 hint to better results in 2H20, with strong demand in Turkey, on-going recovery in international markets and low raw material prices.

Demand conditions are better in Turkey vs global average. However, ARCLK trades at 39% discount to international peers on 2021E EV/EBITDA of 4.9x and 41% discount on 2021E P/E of 9.5x. We increased our DCF based TP to TRY29 vs TRY23.5, on ARCLK’s improving FCF outlook and upgrade to BUY from hold, on its promising outlook and attractive valuation.

Underlying
Arcelik A.S.

Arcelik is engaged in the commercial and industrial activities in respect of the production, sales and marketing, customer services after sales, exportation and importation of consumer durable goods and consumer electronics. Co. has two segments: white goods reportable segment, which comprises washing machines, dryers, dish washers, refrigerators, ovens, cookers and the services provided for these products; and the consumer goods reportable segment, which comprises televisions primarily with flat screens, computers, cash registers, other electronic devices and the services provided to consumers for these products.

Provider
Teb Yatirim
Teb Yatirim

TEB Investment equity research analysts and strategist team consists of 8 analysts with an average finance sector experience of 15 years and special focus on international investors.

With our 6 equity research analysts we cover 93 companies across 21 sectors, reflecting 80% of the total market capitalization of all BIST companies and 86% of the BIST100 companies. Our strategy team provides in depth top-down and bottom-up market views with insight on FX and bond markets by publishing sectoral and strategic reports both in English and Turkish.

Analysts
Akif Dasıran

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