Analysts at Erste Bank recommend ‘hold’ for the shares of Ericsson Nikola Tesla, setting a target price of 1,549.9 kuna, after the company recently announced its business results for the past year and declared a dividend of 120 kuna per share.
Analysts at Erste Bank predict a 2.7 percent increase in net sales revenue for Ericsson Nikola Tesla this year, reaching 1.44 billion kuna. Net profit could reach 142.9 million kuna, što bi bio porast od 11,3 posto u odnosu na lani. Last year, the company achieved a net profit of 128.4 million kuna, što je bilo za 37 posto manje u odnosu na 2008. godinu, and revenue of 1.4 billion kuna, što je pad za 21,5 posto u odnosu na prethodnu godinu. The proposed dividend for 2009 of 120 kuna carries a dividend yield of eight percent, što Erste analysts consider a generous return. They emphasize that this indicates the company’s ability to generate substantial cash even in a challenging business environment.
With the dividend yield and estimated growth potential, this stock could, according to Erste Bank analysts, provide a total return of over 10 percent in the next year. Although they do not expect Ericsson Nikola Tesla to return to pre-crisis growth rates, Erste analysts still believe that the company is a strong cash generator and will continue to pleasantly surprise investors with generous dividends in the coming years. Recently, Ericsson Nikola Tesla surprised with the announcement of a dividend for the past year of 120 kuna per share, što je za 50 kuna više nego godinu dana prije. However, Erste Bank analysts expect the dividend for this year to be 71.49 kuna. Yesterday, on the Zagreb Stock Exchange, the price of Ericsson Nikola Tesla shares ranged between 1,495 and 1,518 kuna. (H)
