Earnings Review & Recommendation Change / Tekfen Holding (TKFEN TI) - Time for a breather: Downgrading to Hold
We inched up our SOTP-based TP by 4% to TRY20.39 (previously TRY19.64). We raise our EBITDA and net income estimates for 2018/2019 by 2%/4% and 1%/4%, respectively. Previously we upgraded the stock to BUY from Hold on 26th June 2018. Looking at Tekfen Holding’s performance since the same date, its price has risen 20%, outperforming the BIST-100 by 21%. After the recent share price run, we believe that the company’s solid earnings momentum is broadly priced in. Thanks to its predominantly USD-based revenue stream and cash position, we expect the company to see resilient cash generation amid Turkey’s economic volatility.
Tekfen Holding conducts its operations in four main business segments: Contracting, Agriculture, Real Estate and Other operations. Contracting group focuses on construction of petroleum and gas facilities, land and sea terminals, offshore platforms and tank farms. Agricultural group has operations in chemical fertilizer, ground and vegetable grain, production, distribution and trade of seedling and sapling. Real estate group operates in designing, constructing, renting, and sale of real estates such as residents, offices, shopping centers and hotels. Operations of other segment comprise of light-pulp trading, cotton yarn production and trading, insurance services and holding operations.
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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