OMV: making chemical bonds (stays BUY)
We maintain our BUY rating on OMV, with an updated price target (PT) of EUR 61.7 (from EUR 56.4), offering upside of 49.9%. The Borealis/ Borouge merger, and the NOVA acquisition, will make Borouge Group International (BGI) the fourth-largest polyolefins company in the world. OMV’s chemicals business will be more geographically diverse and based more on low-cost feedstock. OMV’s upstream cash cow is smaller, since the Malaysian divestment, but it continues to invest and is just two years from the completion of Neptun Deep, its biggest project. Oil prices have tumbled, but we see a recovery from these levels, and attractive gas prices driving upstream EBITDA. Dividends from BGI will maintain a comfortable level of leverage, while OMV invests and pays a progressive dividend: we expect a yield of 7-8% in the next three years. OMV is trading at our P/Es of 6.8x in 2025E and 7.0x in 2027E. Its peer group is trading at averages of 6.5x and 5.1x, respectively.OMV is an international energy company with activities in Exploration and Production (E&P), Refining and Marketing including petrochemicals (R&M), and Gas and Power (G&P). Co. explores and develops oil and gas resources and supply energy to over 100 million people. OMV has three operating segments: Exploration and Production (E&P), Refining and Marketing, including petrochemicals (R&M), and Gas and Power (G&P), as well as the segment Corporate and Other (Co&O).
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.