Titan Cement: Currently under construction (downgraded to HOLD)
We have downgraded Titan Cement to HOLD (from Buy), in view of: 1) the pending tender offer to list on Euronext Brussels; 2) its softer results over the past few quarters, leading us to reduce our EBITDA forecasts by c.7-8% over 2019E-20E; and 3) lower multiples in the cement sector, trading at an EV/EBITDA of c.7x in 2019E vs. a range of 7.5-8.0x in our previous update. Although there is upside optionality in Titan Cement once Greece and Egypt recover, we believe that current valuation levels are fair (EV/EBITDA of 8.5x on our 2019E, a premium vs. its peers). We set our new price target (PT) at EUR 19.0/share (from EUR 25.0/share).Titan Cement Co. and, its subsidiaries (collectively, the Group) are engaged in the production, trade and distribution of a range of construction materials, including cement, concrete, aggregates, cement blocks, dry mortars and fly ash. The Group operates primarily in Greece, the Balkans, Egypt, Turkey and the U.S. The Group operates in 14 countries in Europe, North America and the Eastern Mediterranean and is organized in the following four operating (geographic) segments: Greece and Western Europe, North America, South East Europe, and Eastern Mediterranean.
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.