Allterco: taking 120%+ profit (downgraded to HOLD)
We have downgraded our rating on Allterco to HOLD (from Buy), but hiked our 12M price target (PT) to BGN 21.17/share (from BGN 17.00), offering 11% upside potential. Since our initiation report, in January 2021, the stock is up by +122% (total return), outperforming both local the SOFIX index (+28%) and the MSCI FM (-2%) massively. After this spectacular rally, the multiples are not cheap enough to command a Buy rating, in our view, as the stock is trading at 16.1-9.3x, on our 2022-24E EV/EBITDAs, indicating a 37% discount/3% premium vs. its peers. Moreover, according to management, 2022E will be a high opex year, necessary for securing solid growth in the coming years, which may result in flat yoy EBITDA. Taking this into consideration, we prefer to take profits and monitor the situation, although we still like the growth element in the equity story (we expect a 2022-24E EBITDA CAGR of 19%).
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.
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