Novatek: Breaking the ice (upgraded to BUY)
Our positive outlook for the global gas markets and Novatek’s exceptional execution of the transformational Yamal LNG project have led us to upgrade our investment recommendation from Hold to BUY and raise our price target (PT) to USD 230/GDR. Even though the shares are up 48% ytd, we still see further upside from the higher trading profits at Yamal LNG, the revaluation of Arctic LNG-2 and a stronger performance of the legacy onshore assets. We are 14% and 20% ahead of the Bloomberg consensus at the FY19E EBITDA and net income levels, and even more so on FCF and dividends. Novatek trades at 9.5x P/E, on our FY19E estimates, and offers a 4.1% dividend yield, assuming an increased, 40%, payout ratio.
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.