Jumbo: Christmas has come early this year (stays BUY)
In this report, we recalibrate our 2022-23E estimates, on the back of a rebounding retail performance for Jumbo, reiterating our BUY recommendation. We derive a 12M price target (PT) of EUR 21.1 (vs. EUR 18.3 previously), offering 34% upside potential. The upscaled run-rates witnessed in 2H22 across all of the company’s geographical exposure confirm our view of the retailer’s strong brand name, laying the ground for a record year, in our view. As evident in the published numbers for 9M22, the company is able to absorb the higher input costs successfully, without sacrificing its profitability. Despite the 52-week capital appreciation of 25%, we believe that the market is not reflecting the company’s value fully. On our numbers, the stock is trading at 2023E 9.0x P/E and 4.4x EV/EITDA. We remain BUYers.Jumbo is a trading company based in Greece. Co.'s main operation is retail sale of toys, baby items, seasonal items, decoration items, books and stationery. A part of its operations is wholesale of toys and similar items to third parties. Co. and its subsidiaries have four geographical segments: Greece, Cyprus, Bulgaria and Romania. At June 30 2015, Co. operated 72 stores in Greece, Cyprus, Bulgaria and in Romania and the on line store e-jumbo.
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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