Wirtualna Polska: In e-commerce we trust (upgraded to BUY)
We upgrade our rating on Wirtualna Polska (WPL) to BUY from Hold, and raise our 12-month price target (PT) from PLN 57 to PLN 58.5. Despite the c.4-6% cuts in our 2018-19E adjusted EBITDA forecasts, we have raised our PT on the expansion of WPL’s peer group multiples in the past 12M. We also believe that the main risks have already materialised: the underperformance of the TV project and the slowdown in the online advertising segment. We expect WPL to reach the guided breakeven in TV in 2018E; and see the recent changes in its ad sales model and supportive macro fuelling its online segment’s results. We also see WPL’s investment story being spiced up with potential M&A, as the company’s strategic goal is to consolidate the Polish e-commerce market. Currently, WPL is trading at 15-10% discounts vs. its EM peers on 2018-19E EV/EBITDAs.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.
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