Athens Exchange Group: Look for better entry points (stays HOLD)
The Athens Exchange Group has been a consistent underperformer vs. the ASE index for the past two years (by 9.5% in 2016 and 13.7% in 2017). We expect this weaker share price performance to continue in 2018E, amid stretched valuation multiples and a big premium vs. its peers. The stock trades currently at an EV/EBITDA of c.20x on our 2018E figures vs. the c.14x median for the peer group. Valuation levels appear reasonable only if we assume volumes closer to historical averages. On our sensitivity analysis, the stock trades at 12.1x EV/EBITDA if we input average volumes of EUR 120m per day in our model. Although we expect volumes to expand along with the Greek rerating, we anticipate a more gradual move towards mid cycle levels. We retain our HOLD rating on the stock, but we have increased our price target (PT) to EUR 5.40/share from EUR 5.10/share previously, due mainly to the lower risk free rate in our DCF model (4%, from 5% previously).The Hellenic Exchanges is engaged in the following business sectors: trading, clearing, settlement, data feed, IT, exchange services, depository services, clearinghouse services, and other.
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.