Motor Oil Hellas: motoring beyond oil (stays BUY)
We maintain our BUY rating on Motor Oil Hellas (MOH), with a new 12M price target (PT) of EUR 26.7 (from EUR 21.3), offering 44.6% upside. Refining margins have proven extremely resilient in 2022 ytd, generating record levels of EBITDA. This coincides happily with Motor Oil’s acquisition of Ellaktor’s renewables business, enabling the use of the legacy business cash flow to construct a lower carbon future. The Naphtha complex is now onstream, generating extra margin by boosting gasoline yields. In the next four years, a new gas-fired plant, a niche petrochemicals project and perhaps an LNG terminal will be added to the company’s assets. Despite the growth, we expect a dividend yield of 8-9% over the next few years. Motor Oil trades currently at a P/E of just 1.9x for 2022E based on our forecasts and 5.6x for 2024E.Autohellas is a Hertz national franchisee. Co. is engaged in the rent-a-car segment, comprising of renting (short-term lease) and fleet management (long-term lease and fleet management) in Greece, Bulgaria, Cyprus, Romania, Serbia and Montenegro. Renting covers the needs of both individuals and companies for occasional, small duration rentals up to 1 year long.
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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