Benefit Systems: making really good progress (stays BUY)
We maintain our BUY on Benefit Systems (BFT), with a new price target (PT) of PLN 1,630 (up from PLN 730), which implies attractive 39% potential upside. Despite the recent share price rally, we see the current valuation at 7.5x adjusted EV/EBITDA (non-IFRS 16) as attractive, below the historical double-digit levels and at a slight discount vs. its peers. With the rapidly expanding card base, price increases (B2B and B2C) to compensate for cost inflation and, in our view, larger post-pandemic market potential in the long term, we forecast a three-year adjusted EBITDA CAGR of 19% and an even stronger 29% for the adjusted EBIT. We note the net cash position, the moderate capex and the room for dividend payments (2023-25E dividend yields of 4-7%).Benefit System SA is a Poland-based company engaged in providing work benefits in the area of sport, recreations, culture and entertainment for employers. Its products portfolio includes MultiSport Plus card, program that allows access to the sport and recreation clubs and multi-purpose facilities; MultiBet, providing access to more than 90 cinemas through Poland; and cafeteria programs, which allow employees to select items from such segments as sport, recreation, culture, entertainment, tourism and health and beauty. The Company is a parent entity of a capital group, which includes subsidiaries, such as MyBenefit Sp z o o, FitSport Polska Sp z o o, Vanity Style Sp z o o and Multisport Benefit sro, based in the Czech Republic.
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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