Grupa Pracuj: valuation harmed unjustly by AI threat (stays BUY)
We reiterate our BUY on Grupa Pracuj (GPP) and cut our 12M price target (PT) to PLN 57.4/share (from PLN 66.8/share), implying 44% upside potential. GPP’s share price is down 25% in the LTM, mainly on market worries over the potential AI utilisation impact on the job classifieds business, causing a market-wide derating: GPP peers’ 1-3YF average P/E multiple medians have contracted by 42% in the LTM. We base our positive view on GPP on the assumption that the derating is unjustified fundamentally, as we believe that AI should be broadly neutral for the job classifieds business model, while GPP sees a strong 2026E outlook for its Polish jobs board, Pracuj.pl. Additionally, GPP is the best exposure to potential Ukraine peace in the TMT space – we treat this as a free option, not reflected in GPP’s valuation. On our estimates, the company is trading at 2026-27E P/Es of 10.0-9.1x, at 38-28% discounts vs. its peers.
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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