NBG Securities Research – Athens Exchange Group:
Rich stock valuation at current volume forecasts.
Company Athens Exchange Group
Ticker EXAE GA
MCap (EUR m) 352
Share Price (EUR) 5.38
12-mo. Target (EUR) 5.40
“Rich stock valuation at current volume forecasts. Keep Neutral.”
Neutral rating on valuation grounds and continued low trading activity
We maintain our Neutral rating for the Athens Exchange Group on valuation grounds and lack of upside on our TP. At a P/E of 27x in 2017e (20x excl. cash), we believe that the stock is expensive, and trades well above peers.
Investor activity has been low ytd in the Greek stock market amidst global markets’ weakness in mid 1Q16 and continued bailout review talks in Greece up until yesterday.
Furthermore, we don’t see much room for earnings upgrades in the near term, as our FY16e avg. daily traded value (ADTV) implies EUR100m in the remainder of the year from EUR73m ytd, i.e. an increase of 36%.
Upside risk re. our rating is linked to the relentless delivery on Greece’s bailout programme, the stabilisation of the Greek economy and restoration of confidence in the Greek banking sector that would, in turn, lower the country’s risk, rejuvenate investors’ confidence and drive fast growth in the Greek market’s trading activity.
The company’s high dividend/capital return yield and buyback plan are also good drivers for the stock.*Τα όσα αναγράφονται στη στήλη είναι προιόν δημοσιογραφικής έρευνας και δεν αποτελούν προτροπή αγοράς, πώλησης ή διακράτησης μετοχών