Erste analysts have determined the target price of Atlantska Plovidba shares at 992 kuna, and given that its current price is less than 10 percent below the target, they have recommended holding the shares.
The target price was established by combining the DCF model and comparisons with peer companies, thus revising their 5-year fundamental estimates. "Our long-term estimates for Atlantska Plovidba are favorable, mainly supported by the development of China and India and their dependence on raw material imports. However, the next two years will result in only a moderate recovery of margins, due to the pressure from the influx of new ships into the global fleet and credit issues in China.
We consider this company to be significantly vulnerable to spot freight rate movements, due to its dependence on short-term contracts and a targeted ratio of spot and charter at 50:50," state Erste analysts. This year’s sales revenue for Atlantska Plovidba is estimated by Erste analysts at 889 million kuna, following last year’s 716.4 million. They also estimate that this year the company will operate with a profit attributable to equity holders of the parent of 22.6 million kuna, after last year’s loss of 43.8 million. (H)
