TeraPlast: Building up (BUY - initiation of coverage)
We initiate coverage of TeraPlast with a BUY rating and a price target (PT) of RON 0.437/share, implying 42.4% upside. TeraPlast Group is the largest Romanian construction materials manufacturer, and it has been listed on the Bucharest Stock Exchange since 2008. We like its growth profile, at 13% p.a., on our estimates, over 2019-22E, taking into account a potential slowdown in the construction market in 2021E. The growth should come with some improvement in margins: we forecast the EBITDA margin to reach 10.4% in the medium term, from 9.2% in 2019, driven by improvements in the profitability of its metal tiles business, and dilution of non-raw materials costs. An active dealmaker, we believe that TeraPlast is well-positioned for an acquisition, given its strengthening balance sheet. The company is focused on sub-segments of the construction market with attractive long-term development opportunities, but also some level of protection in the COVID-19 economic slowdown. On our 2020E numbers, TeraPlast is trading at a P/E of 6.4x and an EV/EBITDA of 4.5x, discounts of 69.2% and 40% vs. its peers. We believe it is attractively valued at these multiples.
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.