Athens Exchange Group: set sail to dividend wonderland (BUY - transfer of coverage)

In this report, we transfer coverage of Athens Exchange Group (EXAE), with a BUY rating and an increased price target (PT) of EUR 6.5/share (50.0% upside), from EUR 4.8/share previously. We are constructive on the Greek equity market and expect EXAE to be able to capitalise on the market’s performance in the years to come. We believe that its operating performance should continue to improve and sponsor an attractive EPS growth profile, at a c.11% CAGR over the next 10 years, resulting in improved capacity to distribute dividends. At the current price, we see the dividend yield for 2024E at 6.4%, which we expect to expand more than two-fold by 2033E (a 13.3% yield on the dividends paid in 2033E, from the 2032E results). On our 2024E figures, EXAE is trading at 16.2x P/E, below the market accepted 5Y 12M FWD P/E average, a significant discount vs. its peers (-37%), while also trading below its 5Y average premium to the broader ASE index.