OPAP: The odds are good (BUY - transfer of coverage)
We transfer coverage of OPAP, reiterating our positive view on the stock and setting our 12M price target (PT) at EUR 12.2/share (from EUR 12.0), based on the :1) stable macro environment, reflected in both revenues and the risk free rate; 2) improved profitability, attributed to tight cost control and the completion of the IT investment cycle; and 3) successful completion of the VLT rollout plan this year. The company continues to operate a dynamic model, retaining strong free cash flow generation and a high dividend profile for its shareholders (6.3% in 2019E, excluding extraordinary dividends). In our view, OPAP’s Stoiximan acquisition is fully in line with its online strategy, and should provide a window of opportunity to penetrate the domestic online market further. All-in-all, we continue to place OPAP at the top of our preferences in our Greek coverage universe, based on its strong cash generation and balance sheet profile.OPAP is engaged in the operating and management of numerical lottery and sports betting games as well as lottery games. Co. holds concession to operate and manage new sports betting games in Greece as well as a right of first refusal to operate and manage any new lottery games permitted by the Hellenic Republic. Co. operates six numerical lottery games, including Joker, Lotto, Proto, Extra 5, Super 3, and Kino; and three sports betting games consisting of Stihima, Propo, and Propo-goal. Co. is also engaged in designing new lottery games, including Bingo and Super 4. Co. distributes its games through an extensive on-line network of agents.
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.