WOOD Flash – LSR: 2H20 – strong results, ahead of both our and the consensus estimates
LSR reported a strong set of 2020 results yesterday (23 March), ahead of both our estimates and the consensus, and is guiding for further growth ahead. LSR plans to launch the construction of 1.0m sqm in FY21E, well above its historic annual run-rate of around 800k sqm. While we expect the price growth to slow from the fast pace we saw in FY20, we believe the margins are likely to remain at the current high levels. We believe the combination of volume growth and the still strong pricing could drive a lasting rerating of the stock – especially considering the low leverage (1.0x net debt to EBITDA, the lowest in five years) and the undemanding valuation (7.1x P/E, 0.92x P/B and 4.0x EV/EBITDA, on the 2020 figures). We see upside for our forecasts, and believe that the consensus may also see upward revisions in the coming weeks, in wake of the strong FY20. We reiterate our BUY recommendation. Our 12M price target (PT) of USD 3.4/share implies over 50% upside from the current levels.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.