AmRest: Heading for the top (stays BUY)
We maintain our BUY rating for AmRest, with an increased price target (PT) of PLN 57.0/share (from PLN 43.1). AmRest continues to beat our expectations, both in organic growth and M&A activities. Having doubled its business over the last three years, management expects a similar performance to be repeated by 2021E. On the back of the company’s guidance of an organic rollout acceleration to >500 outlets by 2020E and seven deals signed this year, we expect AmRest to see 2017-20E CAGRs of 20% in sales and 24% in EBITDA (in PLN terms). In addition, we find AmRest’s valuation, at EV/EBITDA of 14.0x for 2019E and 11.7x for 2020E, 1-15% below its global peers, as continuously attractive.AmRest is a holding company. Through its subsidiaries, Co. is an international fas-foods and casual dining restaurant operator in Central and Eastern Europe. Co. has been building a portfolio of well recognized power brands such as KFC, Pizza Hut, Burger King, Applebee's and Starbucks based on solid franchise and joint venture partnerships. Co. owns La Tagliatella brand which is being developed as Co. operated restaurants as well as franchised stores. Co. operates almost 700 category Quick Service and Casual Dining restaurants. Co. is based in Wroclaw and operates in Poland, Czech Republic, Hungary, Russia, Bulgaria, Serbia, Croatia, Spain, France and the United States.
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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