Sarantis announced today the acquisition of Czech cosmetics company ASTRID for E6.5m; this implies P/S 2013 of 0.93x and a pre-tax P/E of 11.0x going down to 3x-4x on a post-synergies basis; we estimate the acquisition is 6.5%-8.5% EPS accretive (2014E pro-forma); move re-affirms Sarantis strategy to use its strong balance sheet to expands its…
We are not big fans of optionality but Sarantis case is too compelling to ignore. 3YR EPS CAGR +18.5% => shares trade 9.5x EPS 2016E and 5.1x EBITDA 2016; 12% FCF yield 2016E; a net cash balance sheet; 2/3 of sales generated outside Greece. Strategy skewed towards acquisitions implies EPS accretion even under conservative assumptions;…
Greece is +13% since the elections with ADV >E280m; we conclude this is driven by re-rating rather than upgrades in earnings; only a handful of companies have scope for upgrade in earnings in our view; the ones that combine both catalysts (re-rating and EPS upside) are Jumbo (OI), Titan (OI), Eurobank (OI) and Motor Oil…
Our EPS estimates are unchanged; our target price stays the same. We present our own plug and play calculator for IKEA related EBITDA. And conclude to OWN the shares today we need to discount 5% LfL in 2015 followed by another …
Nothing really changed post Q1; all drivers (deposit spreads, cost cutting, NPL formation) in place; we revisited our 2013-2016 bridges making small changes to our pre-provision and bottom line forecasts. We stick to our normalized RoTE estimates and valuation assumptions; we reiterate our rating on each bank; cannot exclude a market re-rating…