A strong market recommendation with a target price of 24 euros is addressed by an Edison report on the share of Mytilineos. Following the Flash Note of the financial results, Edison comments that the company’s performance was better than expected, while the upside margin of the share is close to 60%.
The report focuses on the resilience of the company’s business model, which despite the global challenges of the ongoing pandemic and the energy crisis in Europe managed to achieve record profitability in 2021. Mytilineos managed not only to maintain but also significantly enhance its profitability , while it is close to achieving or even exceeding the doubling of its profitability (compared to 2020).
In addition, the quarterly figures of the company highlight the strong momentum for 2022, as after the positive first three quarters, followed a particularly impressive fourth quarter.
Despite the size of the investments that reached 379 million euros throughout 2021, the company manages to achieve high levels of liquidity (1.5 billion today) and keeps its lending and therefore its leverage at low levels compared to the market. (only at 2.2x), due to its consistently strong operating cash flows.
In addition, Edison expects a new record-profit for 2022 and predicts further strengthening of the dividend.
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