In the news conference that followed talks in Berlin between the Greek PM and the German Chancellor the Greek side made a number of U-turn statements, in our view. These statements mark a clear change to the pre-election rhetoric that wanted Greece objecting and discarding the adjustment program in place. On balance, we consider yesterday’s comments a positive development for the market. We highlight the ‘juiciest’ takeaways in our alert note attached.

Downbeat mood; SAR expects Greek GDP to drop by 4% yoy; still, group sales will grow by 8% yoy on acquisitions, foreign operations and EBIT (x-EL) will grow by 30% yoy (+E5m) on operating leverage and synergies. No wonder strategy remains intact with more acquisitions targeted in 2015 (not included in our estimates). Remains DOI given limited upside at current levels and thin trading. Shares have performed better than the market in the last six months.

We cut our estimates again and model reported EBIT margin at 6.2% this year and 6.7% next. This year we see flat sales, EBIT at E400m/adjusted at E452m. Next year; +1% on volumes leads to …contact@researchgreece.com for this note

An unexciting 2015. Corporate actions on Glass could drive the share price short term. For the ICM to surprise ‘we need’ 12% EBITDA margin on 10% topline growth. We believe this …to continue reading contact@researchgreece.com

We do not expect operating leverage to be unleashed this year since we model IKEA related EBITDA margin at 8% and 9% by 2017 which compares to an all time record high of 19.7% back in 2006. To OWN the shares today we need to discount …to continue reading contact@researchgreece.com