With this note we update our views on Greek equities…
EYDAP is working on a 5-year / E0.6bn business plan but few details have been announced; we are missing important elements, therefore …
Shares trade 5.0x EBITDA 2016E including P&H liabilities of E270m; we have lowered our EBITDA estimates by 10%; we believe there is value in Athens Water under certain conditions (see report attached) but since the government has other priorities (and views) the stock will remain a value trap. We reiterate DOI with a lower price…
Investors have their eyes on the E233m sitting in the balance sheet; management said it is ready to give E150m (E1.4/share) back to shareholders – 27% of market cap – on state’s approval. The latter needs the money so a capital return seems like the only business plan there is for the water utility. We…
Status quo or privatization? We see good value in scenario B according to which the state separates infrastructure assets, introduces RAB model and awards (privatizes) the concession business; valuation ranges from E10 per share to E15 per share; latter reflects network expansion and streamlining of costs – in line with a return on RAB of…