Aselsan (ASELS TI) - Great prospects overshadowed: Initiating at Hold
Despite expecting Aselsan’s stellar operational performance to continue at least for the next two years, we, unfortunately, are unable to give a BUY recommendation on the company as the recent deterioration in cash generation capability is significantly hampering its future value creation.
We estimate Aselsan’s revenue growth to remain at elevated levels as the current backlog delivery schedule and probable new contracts expected to be secured throughout FY19 indicate healthy FY19 and FY20 revenue growth at 47% and 57%, respectively. We expect the majority of these contracts to be R&D initiatives and the TRY to continue depreciating, albeit at a much slower pace than in FY18. We expect profit margins to remain relatively stable over the period.
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.
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.