August 17 (SeeNews) - Raiffeisen Capital & Investment (RCI) on Monday confirmed its 'hold' recommendation and its 12-month target price on Romanian producer of polyvinyl chloride (PVC) and polypropylene (PP) building materials Teraplast, after the company reported its second-quarter results.
“Teraplast’s [second-quarter] net profit stood at 3.8 million lei ($1.3 million/ 900,000 euro), down 42% on the year and 47% higher than we expected as the company has been aggressively cutting costs,” RCI said in a statement.
Teraplast’s second-quarter sales fell by 2.4% on the year to 48.9 million lei, versus RCI's estimate of 51.5 million lei.
”Although, we seem to have been too pessimistic about Teraplast profitability over the second quarter we feel that the first-half results fit our picture for the whole year. Therefore, we maintain our 12-month target price of 0.4 lei and our ‘Hold’ recommendation,” RCI added.
Teraplast's stock last traded on August 14 on the Bucharest Stock Exchange, BVB, closing up 1.45% at 0.35 lei.
(1 euro = 4.2225 Romanian lei)