Eurobank Equities increased the target price for the share of Hellenic Petroleum, to 8.30 euros from 7.20 euros previously, rephrasing the “purchase” recommendation.
As the stock exchange notes, the new target price reflects the improved operating environment of ELPE and integrates their movements in the field of Renewable Energy Sources (RES).
Based on the new target price, the stock trades with EV / EBITDA at around 6.2 for 2022, which is slightly higher than the current average valuation of EU refineries.
The stock exchange notes that ELPE refining margins have recovered to pre-pandemic levels, while adding that the Group is expected to benefit from the improved price environment, although it warns that the recovery remains vulnerable due to possible “reversals”, such as of Micron or other variants of the coronavirus and / or a slower recovery of the world economy.
Eurobank Equities estimates that ELPE will continue to show better market performance and is upgrading its estimates for the adjusted EBITDA of the group in the two years 2022-2023 by approximately 10% -14%.
The stock exchange also refers to the expansion of the port of ELPE in RES, noting that the investments of the companies in the “new energy” can strengthen the EBITDA kat; a 55-60 million euros per year in full growth.
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