Sarantis Group: Fairly priced, for now (stays HOLD)
We have fine-tuned our estimates on Sarantis Group, and we reiterate our HOLD rating, in the absence of short-term catalysts that would unlock the potential of the group further, to create value through synergies. Nevertheless, we believe that Sarantis Group remains a value stock, with its leading position in Emerging Europe, its solid balance sheet and its proven track record on strategic acquisitions, and we recommend this stock for patient investors with a longer investment horizon. With the Oinofyta plant expansion now completed, the company is investing currently in the upgrade of its Polipack facility in Poland, to be completed by the end of the year. The sales performance in the first six months brought no surprises, with Sarantis Group reporting 6.3% yoy growth, and the group guiding for organic growth of 4-5% for the year, in the lower band of expectations, given the semi-annual performance, in our view. On our 2021E numbers, Sarantis is trading at 15.4x P/E and 10.1x EV/EBITDA; and 14.4x P/E and 9.2x EV/EBITDA for 2022E, within 1 STD, on historic multiples.Co. is a consumer goods manufacturer and distributor engaged in operations in Greece. Co. produces consumer goods such as cosmetics, pharmaceuticals, households, pet products, car's accessories and apparel. Co. produces its own brand name of cosmetic products such as Prosar, Str8, BU99, Clochard, Carroten, Tokalon and others. Co.'s product portfolio also includes a range of international brands such as Estee Lauder, Clinique, Aramis, Donna Karen, Orlane, Montana Versace and others.
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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