AD Plastik: The worst is over, but outlook still uncertain (stays HOLD)
Following the 2020 full results release, on 17 February, we have updated our model and increased our 12M price target (PT) for AD Plastik to HRK 203/share (from HRK 147). The higher valuation is driven mainly by the company’s flexible cost control and improving sales figures, but also the clearer outlook for the industry, its decision to pay a dividend this year, and higher peer multiples. We believe the risk of shutting down plants is limited currently, but we note that some risks, which are outside the company’s control, related to the pandemic, are ongoing. We are particularly uncertain about the form of the market rebound this year and we do not have the company’s 2021E guidance yet. By proposing to pay a dividend, however, AD Plastik is showing confidence, in our view, and we see the company as a solid investment going forward. After the recent rally, which we see as justified, we maintain our HOLD rating on AD Plastik, with 10% upside to the current price.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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.