Otokar (OTKAR TI) - Brighter outlook with new order intakes: Maintain Buy
Factoring in the recent order intakes and updated macro forecasts (risk-free rate assumption increased by 100bp to 14%), we raise our 12M TP by 33% to TRY221.8 per share, implying a 31% upside potential. We believe the improved outlook for commercial vehicles, along with the resilient defence segment operations, is indicative of strong growth in 2021. As a result, we expect our revised 2021 EBITDA and net income estimate to grow by 44% and 62%, respectively. We believe Otokar will penetrate further into the global armoured vehicle market, over the long term, on the back its knowhow accumulation and expanded defence portfolio.
Otokar Otomotive Ve Savunma Sanavi is engaged in the import, manufacture, assembly, sale and export of bodies, engines, and all other components of all kinds of land, sea and air defense vehicles, as well as security vehicles, commercial buses, trucks, minibuses, midibuses, panel vans, cross-country vehicles, etc. Co.'s primary focus is on the production of Land Rover 4x4 and minibuses.
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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