Teb Yatirim - Ulusoy Elektrik Imalat Taahhut ve Ticaret AS (ULUSE) Ulusoy Elektrik (ULUSE TI) - Lacks upside potential: Downgrading to Hold

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Teb Yatirim

Kurthan Atmaca

EUR 9.60 For Business Accounts Only

Ulusoy Elektrik (ULUSE TI) - Lacks upside potential: Downgrading to Hold

On 28 Nov, media reported that US-based power management company Eaton Corporation is in advanced talks to buy Ulusoy Elektrik for around USD300m. The current market value of Ulusoy Elektrik is USD230m. Ulusoy Elektrik has also confirmed this news. Ulusoy family owns more than 80% of Ulusoy Elektrik; therefore, if the majority stake is sold, Eaton might launch a tender offer to minority shareholders for the remaining stake. Following the news, the stock surged by 15% on 28 Nov (vs 14.4% for BIST100) and closed at TRY15.21, which is above our target price of TRY14.95. Therefore, we downgrade to HOLD from Buy.

29/11/2018 8 EN

Underlying

Ulusoy Elektrik Imalat Taahhut ve Ticaret AS

Ulusoy Elektrik Imalat Taahhut ve Ticaret AS. Ulusoy Elektrik Imalat Taahhut ve Ticaret AS is a Turkey-based company engaged in the manufacture of switchgears. The Company's products are: HMH series metal enclosed modular switchgears, which are medium voltage switchgears designed for use in secondary distribution systems, in compact kiosk type transformer substations, in industrial facilities and indoor spaces; LBSG Series Complete SF6 Gas Insulated medium voltage Modular Switchgears (RMU), which are used in M.V secondary distribution systems; Metal Clad Switchgears, used in Energy Generation and Distribution Facilities, Mines and Iron and Steel Factories, among others, and UBET series monoblock concrete substation kiosks, used in secondary distribution systems for housing purpose of modular Switchgears, distribution transformers , LV distribution boards and other medium voltage switchgear and and distribution equipments, among others.

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TREULET00014 Istanbul Stock Exchange Turkey

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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.

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Analysts

Kurthan Atmaca

Other Reports on these Companies

Teb Yatirim

Company Report & Initiation / Ulusoy Elektrik (ULUSE TI) - Profitable growth to continue: Initiating at Buy

Considering the growing energy demand and modernization needs, investments in electricity transmission and distribution infrastructure are expected to increase in the coming years. As the leading electrical equipment manufacturer in Turkey, Ulusoy Elektrik is well positioned to reap the benefits of prospective growth in the electricity infrastructure market. Accordingly, we estimate that the company’s domestic revenues will post a 6% CAGR in 2017-2020. On top of a strong foothold in the domestic market, Ulusoy Elektrik exports its products to more than 50 countries. The company’s export reven...

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SmartInsider

Two Directors sold 903,698 shares at between 0.000TRY and 9.170TRY.

Two Directors at Ulusoy Elektrik Imalat Taahhut Ve Ticaret A.S sold 903,698 shares at between 0.000TRY and 9.170TRY. The significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity...

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Ulusoy Elektrik (ULUSE TI) - Lacks upside potential: Downgrading to Hold

Company Report & Initiation / Ulusoy Elektrik (ULUSE TI) - Profitable growth to continue: Initiating at Buy

Two Directors sold 903,698 shares at between 0.000TRY and 9.170TRY.

TURKEY STEEL - Strong outlook prevails

Turkcell (TCELL TI) - Investments on the rise: Maintain Hold

Ulker Biskuvi Sanayi (ULKER TI) - Proven resilience: Maintain Buy

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