Allterco: strong results paving the way for expansion in 2023E (stays HOLD)

Following its strong 3Q22 results and rolling over our DCF, we have revised our estimates for Allterco, raising our 12M price target (PT) to BGN 21.6/share, or 11% upside, and maintaining our HOLD rating. Since our previous update, its shares have risen by 15%, on the back of strong results, which overshot our expectations, once again, and surprised the market positively. We highlight the above-than average demand for the company’s products, related to energy saving and consumption (such as meters, relays and sensors), which supports our confidence that it should meet its revised 2022E top-line target (50% yoy growth in sales), albeit on flat yoy profitability, due to growth in investments (as expected). For now, we HOLD the name, as it is trading currently in line with its peers on 2022-23E P/Es and EV/EBITs (2%/10% discount and premium, respectively), and we would wait to see how it manages to navigate its expansion strategy against the economic headwinds in 2023-24E.