Arcelik: a transformation story worth paying for (BUY - reinitiation of coverage)
We reinitiate coverage of Arcelik with a BUY rating and a 12M price target (PT) of TRY 207.5. We believe the revenue growth trajectory in its core markets, and the operational efficiencies to be exploited from Whirlpool deal, should remain the key pillars of the Arcelik investment case. We anticipate strong growth in its key financial metrics in 2024E, as Whirlpool’s European and MENA operations are consolidated. We believe that Arcelik is being mispriced by the market: on a 5.3x 2024E EV/EBITDA and a 9.2x 2024E P/E, the current price depicts a bearish outlook, in our view, and does not reflect Arcelik’s growth prospects.Arcelik is engaged in the commercial and industrial activities in respect of the production, sales and marketing, customer services after sales, exportation and importation of consumer durable goods and consumer electronics. Co. has two segments: white goods reportable segment, which comprises washing machines, dryers, dish washers, refrigerators, ovens, cookers and the services provided for these products; and the consumer goods reportable segment, which comprises televisions primarily with flat screens, computers, cash registers, other electronic devices and the services provided to consumers for these products.
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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