Wood and Company - HeadHunter (HHR) HeadHunter: HOLDing onto quality (downgraded to HOLD)

Report

Wood and Company

Dmitry Vlasov ...

Ildar Davletshin, CFA

HeadHunter: HOLDing onto quality (downgraded to HOLD)

We have downgraded our rating for HeadHunter to HOLD (from Buy) and lowered our 12-month price target (PT) from USD 26.4 to USD 26.1 (8% upside potential). We still like HeadHunter for its high-quality, strong fundamentals and leading position in the Russian online recruitment market. However, its current valuation does not offer an attractive risk-reward opportunity anymore, due to the weakening macro; therefore, we believe it is a good time to take profit. HeadHunter now trades close to our new PT of USD 26.1, offering limited upside of 8%. The discount vs. its international peers has also diminished since our initiation, as HeadHunter now trades at 13.8x EV/EBITDA on our 2022E estimates vs. its global online recruitment peers’ 16.6x, representing a 20% discount, vs. the 32% discount seen in September 2020.

24/11/2020 1 EN

Underlying

HeadHunter

See profile

Provider

Wood and Company

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.

See profile

Analysts

Dmitry Vlasov

Ildar Davletshin, CFA

Other Reports on these Companies

Sberbank

CIS Market Daily - November 10, 2021

MARKET COMMENT - US, CHINESE NUMBERS FUEL CONCERNS AHEAD OF TODAY'S US CPI DATAAlthough APAC heavyweights and Brazil pulled up the MSCI EM to a 0.3% gain yesterday, the EM median was flat and the US saw its first net declines in nine days. The RTS performed roughly in line with peers with a 0.1% decline to 1,864. US PPI yesterday and Chinese inflation numbers today have reinforced concerns about inflation for markets ahead of today's releases for US monthly CPI, Russian weekly CPI and Russian GDP.STORIES> Rostelecom 3Q21 IFRS results broadly in line with consensus; EBITDA guidance upgraded, as...

November 10, 2021 November 10, 2021 15 EN

Sberbank

HeadHunter - Positive 2021 Trends Persisting, Upgrading to BUY

We have updated our model for HeadHunter to incorporate the most recent results, as well as the positive trends that still seem to be in place. We expect another robust set of quarterly results on November 15, with top-line growth slightly higher than 90% y-o-y and a healthy 56.5% EBITDA margin in 3Q21. The latter would not be far from the 2Q21 level despite higher marketing spending. We have also updated our valuation of HeadHunter, switching to a two-stage DCF model that produces a $64.93 per share 12-month target price and warrants an upgrade to BUY.> Positive 2021 trends persisting. The si...

November 9, 2021 November 9, 2021 8 EN

Sberbank

CIS Market Daily - November 9, 2021

MARKET COMMENT - NEW DM RECORDS ON IMPROVED MACRO SENTIMENT; MORE CONSERVATIVE OUTLOOK TODAYUS and European indexes set new records, and cyclicals clearly led the day. The lack of material new catalysts suggests the gains were mainly driven by improved macro sentiment following Friday's US jobs numbers. The RTS climbed 0.9% to 1,865, led by TCS and metals stocks, while real estate lagged. An indecisive APAC session and slightly lower futures point to consolidation early this morning, while results and a heavy calendar of central bankers' speeches are in focus. STORIES> TCS Group: New co-CEO ap...

November 9, 2021 November 9, 2021 15 EN

WOOD Daily: CZ Banks; ALARABIA AB; GEV CP; EME Macro/Strategy Weekly; CAR PW

HEADLINES: • Czech banks: special sector levy headlines continue to flow NEGATIVE • Al Arabia Outdoor Advertising: 1Q24 interim financial results POSITIVE • GEVORKYAN: 1Q24 – strong set of results, with EBITDA up 24% yoy, 17% above our estimate POSITIVE • EME Macro/Strategy: macro all-in-one (13-19 May) • Inter Cars: 25% yoy 1Q24E EBITDA decline, on top line and FX-related gross margin weakness (due on 22 May) • Short News (DAT, OTE)

4h / 26m 4h / 26m 1 EN

Alessio Chiesa ... (+2)

Alessio Chiesa
Raffaella Tenconi

EME Macro/Strategy: macro all-in-one (13-19 May)

Last week's macro news flow in our region was driven by Georgia: despite the widespread protests, parliament passed the contentious "foreign agent" law, followed by the presidential veto over the weekend, which is likely to be overruled by Georgian Dream, the ruling party. Romania's GDP growth presented mixed signals, with a modest uptick in the adjusted annual growth, but a slowdown in unadjusted terms, suggesting cautious optimism for future rate cuts by the NBR. Poland's economic growth decelerated slightly, affected by weak consumer spending, although our projections remain positive. The i...

4h / 50m 4h / 50m 1 EN

Peter Palovic

Peter Palovic

WOOD Flash – GEVORKYAN: 1Q24 – strong set of results, with EBITDA up 24% yoy, 17% above our estimate

On 15 May, GEVORKYAN reported better-than-expected results, with EBITDA of EUR 7.3m (+24% yoy), a 17% beat vs. our estimate of EUR 6.2m. The revenues were up by 31% yoy, at EUR 24.2m, a 10% beat vs. our expectations. Management has reiterated its guidance for 2024E but, if the 2Q24E results are above the company’s plan, it could upgrade its guidance. In 1Q24, GEVORKYAN delivered an EBITDA margin of 30%, 2ppts higher than we anticipated. For 2024E, we are more conservative on the operating profitability and we expect a 28% EBITDA margin, while the company is guiding for 30%. If delivered succes...

May 17, 2024 May 17, 2024 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

HeadHunter: HOLDing onto quality (downgraded to HOLD)

CIS Market Daily - November 10, 2021

HeadHunter - Positive 2021 Trends Persisting, Upgrading to BUY

CIS Market Daily - November 9, 2021

WOOD Daily: CZ Banks; ALARABIA AB; GEV CP; EME Macro/Strategy Weekly; CAR PW

EME Macro/Strategy: macro all-in-one (13-19 May)

WOOD Flash – GEVORKYAN: 1Q24 – strong set of results, with EBITDA up 24% yoy, 17% above our estimate

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe