Wirtualna Polska: M&A-fuelled expansion ahead (stays BUY)
We maintain our BUY rating on Wirtualna Polska (WPL) and cut our 12M price target (PT) to PLN 131.5/share, from PLN 145.8, implying c.16% upside. We see WPL as an attractively valued, high-quality company, offering good cyclical exposure to Polish macro. We anticipate that the latter should be supportive for WPL’s organic growth while, in the short-term, its results expansion should be boosted by the value-accretive M&A undertaken in 2H22. We expect the Polish online ad market rebound, coupled with a solid performance from WPL’s e-commerce businesses (esp. Wakacje.pl and Superauto), to result in a 9% 2022-25E pro-forma EBITDA CAGR and a 17% reported EBITDA CAGR (inc. M&A). WPL does not seem expensive on multiples, trading at 2023-24E EV/EBITDAs of 9.0-8.0x, implying 15% and 11% discounts vs. its peers.Wirtualna Polska Holding SA is a Poland-based holding company. The Company owns entities that are engaged in the Internet publishing and broadcasting content, including operating business, technology, sports and entertainment portals, as well as electronic mail (e-mail) and electronic commerce (e-commerce). It also offers a range of advertising products, including display ads. The Company operates through such Internet portals as Wirtualna Polska, o2.pl, Money.pl, WP SportoweFakty, Dobreprogramy.pl, WP Parenting, Domodi and Homebook, among others. The Company operates domestically.
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.