Aselsan (ASELS TI) - Strong set of results: Maintain Hold
Aselsan’s 4Q19 net profit came in at TRY1.4b, higher than our estimate of TRY1.2b and the RT consensus of TRY1.1b. The deviation in the bottom-line came from higher-than-expected operating profitability. 4Q19 EBITDA of TRY1.3b came in 26% higher than our estimate of TRY1b and RT consensus of TRY1.1b.
Based on a lower risk-free rate assumption of 13% (previously 17%) and updated macro forecasts, we raise our DCF-based 12M TP (based on 2019 financials) by c10%, which implies a c10% upside potential. Despite being optimistic of the company’s operational performance, we believe the current risk/reward profile warrants a HOLD rating.
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.
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