BUCHAREST (Romania), September 7 (SeeNews) – Raiffeisen Capital & Investment (RCI) on Monday confirmed its 'hold' recommendation on Romanian producer of polyvinyl chloride (PVC) and polypropylene (PP) building materials Teraplast but cut its 12-month target price.
“We have updated our DCF model based on the second-quarter results and management comments. [It] indicates a fair value of 88 million lei ($29.7 million/20.7 million euro), corresponding to a 12-month target price of 0.38 lei, which implies an 8.6% upside from Teraplast’s closing price on September 3,” RCI said in a statement.
“Hence, we maintain our Hold recommendation.”
Last month RCI confirmed its 'hold' recommendation and its 0.4 lei 12-month target price on Teraplast, after the company reported its second-quarter results.
Teraplast’s second-quarter net profit was 3.8 million lei, down 42% on the year and 47% higher than what RCI had expected. Its second-quarter sales fell by 2.4% on the year to 48.9 million lei, versus RCI's estimate of 51.5 million lei.
Teraplast's stock last traded up 2.2% at 0.372 lei by 1128 GMT on Monday on the Bucharest Stock Exchange.
(1 euro = 4.2453 Romanian lei)