WOOD Daily: ESLT IT; HUG PW; TEN PW; PCF PW; VGO PW; CDR PW; PGE PW; G...

HEADLINES: • Elbit Systems: HOLD, on valuation grounds (downgraded to HOLD) • Polish mobile game development: missing the growth, counting cash (Huuuge Games stays BUY, Ten Square Games stays HOLD) • PCF Group: 3Q24 EBIT in positive territory, above our and the market's expectations POSITIVE • VIGO Photonics: 3Q24 – miss on the adjusted EBITDA and bottom line NEGATIVE • CD Projekt: 3Q24 EBITDA 8% below our forecast, 5% above the consensus NEUTRAL • PGE: 3Q24 results fully in line with the prelim...

Polish Mobile Game Development: missing the growth, counting cash (Huu...

In this report, we maintain our BUY rating on Huuuge Games (HUG), with our 12M price target (PT) cut to PLN 24.8 (vs. PLN 34.6). For Ten Square Games (TEN), we reiterate our HOLD rating, having cut our 12M PT to PLN 83 (vs. PLN 100). On our revised down forecasts, both HUG and TEN offer significantly weaker earnings outlooks vs. their foreign peers (a 3Y adjusted EBITDA CAGR of -17% for HUG and -8% for TEN, vs. +6% for their peers, on the consensus). We mostly blame the low diversification (two ...

Awaiting Visibility; Maintaining Neutral; PT to PLN 192

WOOD Flash – GTC: 3Q24 – recurring broadly in line, risk-on after the ...

We do not expect the results – which were broadly in line on the recurring lines – to drive the stock. Disposals are key for the equity story, in our view, especially after the acquisition of the German residential portfolio (please see our flash note, for further details). The falling interest rates in Europe and the constructive market sentiment towards high-yield issuers are supportive. If sustained, these could make it easier for GTC to refinance part of the 2026E EUR 500m bond. That said, t...

WOOD Daily: KLKIM TI; EME Macro/Strategy Weekly – Year Ahead, Part 2; ...

HEADLINES: • Kalekim: compelling growth story yet to be priced in (BUY - reinitiation of coverage) • EME Macro/Strategy: macro all-in-one – the Year Ahead issue, part 2 • Athens Exchange Group: solid delivery in 3Q24, small beat vs. our expectations POSITIVE • Wirtualna Polska: 3Q24 results review – adjusted EBITDA up 3% yoy, in line with the consensus NEUTRAL • GTC: 3Q24 – recurring broadly in line, risk-on after German acquisition NEUTRAL • Romania macro: implications of the presidential elect...

WOOD Daily: KMGZ KZ; PL Macro; RO Macro; ALARABIA AB; PCF PW

HEADLINES: • KazMunayGas: 3Q24 results NEUTRAL • Poland macro: presidential candidates announced; negative early sentiment signals for November • Romania macro: first round of presidential elections confirms rise of the far right • Al Arabia Outdoor Advertising: awarded contract to advertise on intercity roads in Saudi Arabia POSITIVE • PCF Group: 3Q24E EBITDA returns to positive territory, on revenue recovery (due out tomorrow)

WOOD Daily: RO Oil & Gas; AKCNS TI; EME Macro/Strategy – Dividends; HU...

HEADLINES: • Romanian oil & gas: just have a little patience (OMV Petrom stays BUY, Romgaz downgraded to HOLD – transfer of coverage) • Akcansa: recovery on the horizon (stays BUY) • EME Macro/Strategy: dividends in EMEA – if growth is in doubt, opt for payout • Huuuge Games: 3Q24 broadly in line with our expectations, slightly above the consensus NEUTRAL • Colt CZ Group SE: 3Q24 results – slow quarter; FY24E guidance confirmed NEUTRAL • Türkiye macro: CBT signals a dovish turn • Cyfrowy Polsat:...

Wedbush Morning Call - Nov 21 2024 7:10AM

WOOD Morning (21 November 2024)

HEADLINES: • PZU: 3Q24 not as weak as feared – once the special claims end, should deliver a very strong profitability profile POSITIVE • Cyfrowy Polsat: 3Q24 results review – adjusted EBITDA up 13% yoy, 2% above our estimate POSITIVE • Grupa Pracuj: 3Q24 results – adjusted EBITDA up 8% yoy, 3% above our forecast and 6% above the consensus POSITIVE • OPAP: 3Q24 earnings beat expectations, as EBITDA jumps 24% yoy POSITIVE • Motor Oil Hellas: 3Q24 results – CCS EBITDA in line NEUTRAL • Elbit Syste...

Polaris Release Timing Remains Uncertain; PT to PLN 160

WOOD Daily: AEGN GA; GTC PW; AQ RO; GEV CP; HSBK LI; BFT PW; MOH GA; K...

HEADLINES: • Aegean Airlines: high net cash position and strong FCFF yield (upgraded to BUY) • GTC: buys German residential portfolio worth EUR 448m • Aquila Part Prod Com S.A.: gross margin and wage costs weigh on the 3Q24 results NEUTRAL • GEVORKYAN: 3Q24 broadly in line with our expectations; new signed contracts for defence and high-tech industries NEUTRAL • Halyk Bank: 3Q24 highlights – solid, on the back of better-than-expected NIM • Benefit Systems: 3Q24 call takeaways – strong long-term ...

WOOD Flash – GTC: buys German residential portfolio worth EUR 448m

In a bold move, GTC is buying into a EUR 448m residential portfolio, comprised of apartments in three small German towns. Initially, this acquisition will not be FFO accretive, as the rental income will be consumed by opex and, chiefly, interest costs. GTC plans to sell a large part of the portfolio to small investors, building by building, over the next two years, hopefully at a profit. The money raised from the sales should be used to repay the more expensive part of the debt funding of the de...

WOOD Daily: BFT PW; PBK RO; CAR PW; FTSHP CP; AEGN GA; SFG RO; CBF PW;...

HEADLINES: • Benefit Systems: 3Q24 in line with our forecasts; solid trading update; 2025E outlook and 2025-27E strategy POSITIVE • Patria Bank: strong 3Q24 results POSITIVE • Inter Cars: 3Q24 EBITDA 1-4% below our and the market's expectations NEUTRAL • Footshop (NOT RATED): solid 3Q24; 2024E guidance boosted POSITIVE • Aegean Airlines: 3Q24 – flat RASK, CASKX up 14%; 27% lower EBIT, on 4% lower ASK (in line) NEUTRAL • Sphera Group: 3Q24 post-results webcast takeaways POSITIVE • cyber_Folks: ke...

WOOD Daily: 11B PW; SFG RO; AEGN GA; ELPE GA; HTO GA; SNG RO; MTELEKOM...

HEADLINES: • 11 bit studios: 3Q24 surprises slightly positively, but ytd Frostpunk 2 sales disappoint NEGATIVE • Sphera Group: small beat in 3Q24 – new Cioccolatitaliani franchise signed for Italy POSITIVE • Aegean Airlines: 3Q24 – flat RASK, CASKX up 14%; 27% lower EBIT, on 4% lower ASK (in line) NEUTRAL • HELLENiQ Energy: 3Q24 results and interim dividend NEUTRAL • OTE: 3Q24 results review – soft quarter, with flat yoy adjusted EBITDA, in line with expectations NEUTRAL • Romgaz: 3Q24 results N...

WOOD Daily: EAT PW; EUR PW; CBF PW; MBR PW; ALE PW; VRC PW; TEN PW; PK...

HEADLINES: • AmRest: 3Q24 in line, on a EUR 9m positive one-off NEGATIVE • Eurocash: 3Q24 weak, as expected; FY25E guidance cancelled NEGATIVE • cyber_Folks: 3Q24 results review – 26% yoy adjusted EBITDA growth, 2% above our estimate POSITIVE • Mo-BRUK: 3Q24 EBITDA up 26% yoy, 22-28% above our and the market's expectations POSITIVE • Allegro: 3Q24 EBITDA beat, but yoy decline guided for 4Q24E, due to international operations NEUTRAL • Vercom: 3Q24 results - 28% yoy EBITDA growth, in line with ou...

WOOD Daily: OTP HB; CCC PW; DNP PW; INPST NA; MOL HB; WIZZ LN; EUROB G...

HEADLINES: • OTP Bank: solid 3Q24 results, in line with our forecasts; future share price performance depends on growth guidance and/or capital distribution NEUTRAL • CCC: historically-best quarterly EBITDA 9% above our expectations, due to opex control POSITIVE • Dino Polska: 4-8% EBITDA beats in 3Q24, EBITDA back on the rise POSITIVE • InPost: 3Q24 in line with expectations; FY24E guidance upgrade POSITIVE • MOL: 3Q24 results – EBITDA in line with our and the consensus estimates NEUTRAL • Wizz...

WOOD Daily: MTELEKOM HB; SHO PW; THYAO TI; CCOLA TI; TOASO TI; AIRA LI...

HEADLINES: • Magyar Telekom: another record strong year ahead (stays BUY) • Shoper: 3Q24 adjusted EBITDA up 28% yoy, broadly as expected NEUTRAL • Turkish Airlines: 3Q24 – EBIT and EBITDA in line with our estimates, 4-5% above the consensus POSITIVE • Coca-Cola Icecek: weak results in 3Q24, revenue growth guidance lowered NEGATIVE • Tofas: highly weak set of results in 3Q24 NEGATIVE • Air Astana Group: 3Q24 in line with our estimates NEUTRAL • Isbank: 3Q24 highlights – core bank still loss makin...

WOOD Daily: OTKAR TI; TPEIR GA; BRISA TI; ELM AB; JAHEZ AB; ALK MS; EM...

HEADLINES: • Otokar: weak set of 3Q24 results NEGATIVE • Piraeus Financial Holdings: 3Q24 highlights – decent quarter, with revised guidance POSITIVE • Brisa: profitability should return in 4Q, on October price hikes NEUTRAL • Elm: strong 3Q24 financial results POSITIVE • Jahez: strong 3Q24 results POSITIVE • Alkaloid AD Skopje: strong 3Q24 sales and a qoq margin rebound POSITIVE • EME Macro/Strategy: macro all-in-one (28 October-3 November) • Magyar Telekom: reaches agreement with the trade uni...

The Rear-View Mirror – EME markets: only the Czech Republic in the bla...

EME Equity Market – October 2024 A red October for the EME indices, only Czechia in positive territory. The MSCI EM Europe Index declined by 6.0% in EUR terms and 8.4% in USD terms in October. The Czech PX index was the only one spared, adding 1.3% mom in EUR terms. Türkiye was battered the most, with the Turkish ISE30 declining by 7.3% mom in EUR terms, followed closely by the Polish WIG20 (-6.7% mom in EUR terms). Greece fell 4.8% mom in EUR terms, while the Hungarian BUX index lost 2.7% mom i...

WOOD Daily: EBS AV; MBK PW; ING PW; JMT PL; KOMB CP; MCOVB SS; TKNSA T...

HEADLINES: • Erste Bank: 3Q24 results – strong NII delivery • mBank: underlying 3Q34 business delivery in line; beat on headline net profit due to tax charges NEUTRAL • ING BSK: 3Q24 results – minor miss on high credit risk charges, as corporate NPL ratio surges NEUTRAL • Jeronimo Martins: beat in 3Q24, Biedronka at -2% lfl and stable margin erosion; price war continues POSITIVE • Komercni Banka: 3Q24 results – net profit largely in line with expectations • Medicover: 3Q24 operating numbers in l...