CITI is proceeding with the purchase recommendation and revision of the target price of Mytilineos.
With a special report for the Greek listed company, the bank raises the target price to 22 euros per share, with the upside being close to 60%.
CITI sees more than doubling the profitability of the Greek company for 2022 with the following main axes:
1. a very favorable environment for metallurgy, with record prices for aluminum and premiums while costs remain locked at very low, for the season, levels
2. another very strong year for the Power & Gas sector, as, contrary to market estimates so far, CITI estimates that Mytilineos will be significantly strengthened in 2022, both by the addition of the new power plant and by the efficiency of existing plants that can boost their profitability even at high gas prices.
3. the further strengthening of the Renewable Sources Development & Energy Storage sector, which matures a portfolio of approximately 5GW of RES projects abroad, which in combination with the approximately 2GW of RES projects developed by the company in Greece, create a strong RES portfolio of 7GW.
CITI estimates that, for MYTILINEOS, growth has come to stay, as profitability is expected to increase steadily for the coming years. The analyst expects a threefold profitability in 2024 compared to 2021.
The above, in combination with the high dividend yield, which the CITI analyst places at 5% in 2022 and 8% in 2024, confirms the assessment of the president of the company Evangelos Mytilineos, that Mytilineos is the ideal combination of a Development company ( Growth stock) and Value stock.
Equally important is the analyst’s assessment that, despite the high investments, the leverage of the company remains low and will continue to decrease (from 2.2x in 2021 to 1.0x in 2024), due to the consistently strong operating cash flows of the company.
Latest News
Lavrio Port Authority Next Up for Privatization
A deadline for the submission of expressions of interest is May 14, 2024
Eurostat: Greece Records Largest Drop in Natural Gas Prices in 2nd Half of 2023
The price of electricity and natural gas in Europe was down following a substantial surge that began before the Russian invasion of Ukraine and peaked in 2022
GEK TERNA Still Considers Leveraging Concessions Portfolio as Financial Tool
President and CEO of Gek Terna George Peristeris explained the company's plans on Tuesday on the sidelines of the inauguration of sections of Greece's E65 highway
NielsenIQ: 3% Supermarket Revenue Increase in Q1
Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%
Store Hours Change Today in Observation of Orthodox Easter
The President of the Athens Chamber of Commerce hopes the Easter period will provide a much-needed boost to retail traffic in the capital
Athens-area Mass Transit Systems Set to Finally Install Contact-less Fare Payment
Paying fares via bank cards, smartphones and smartwatches in all mass transit systems in the Greek capital, namely, buses, trolleys, the metro and tram lines, is scheduled by the end of the year
Council of State Rejects Motion Against Thessaloniki Motorway Project
The motion was filed earlier this month by three local citizens’ and environmental groups and generated a high court decision for a temporary stay in construction
Greek 30Y Bond Issue Oversubscribed by 11 Times
Very high demand pushed down the coupon's interest rate to 4.125%
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses
IOBE: Income Gap Between Poor and Wealthy Greeks Widens
The findings in the analysis, entitled “Progressivity in Income Taxation in Greece, 2012-2021", paint a bleak picture for Greeks in the bottom half of the income bracket, warning that income inequality is growing