Grupa Pracuj: volume rebound expected in 2025E (upgraded to BUY)
We have upgraded our rating on Grupa Pracuj (GPP) to BUY (from Sell), and increased our 12M price target (PT) to PLN 66.8/share (vs. PLN 48.4/share), implying 19% upside potential. Our previous key Sell thesis, related to the macro slowdown and labour market weakness, materialised last year (volumes in Poland were down 11% yoy), while its rich valuation multiples have contracted to more attractive levels now. In line with GPP’s guidance and considering the recent market trends, we believe we are ahead of a rebound in the number of projects in 2025E. Moreover, we see GPP as the best exposure to a potential Ukraine recovery, especially after the recently concluded investment agreement, increasing its stakes in local job boards – we see this deal as value accretive. On our estimates, GPP is trading at 2025-26E EV/EBITDAs of 10.8-9.5x, at 17-8% discounts vs. its peers, respectively.
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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