DM PKO BP lowered the recommendation for PKP Cargo to “sell,” target price to 70 zł – Onet.pl

DM PKO BP in a report dated August 11, lowered the recommendation for PKP Cargo to “sell” from “hold,” while reducing per-share price target to 70 from 93 zł zł earlier.

This recommendation at the rate of 74.2 zł.

“Very high activity board in the search for savings in the group PKP Cargo tangible results, but they are not able to offset the strong declines in prices for air. Very strong operating leverage resulting in strong shrinking free cash flow “- written.

” The potential risks are also the expected increase in investment, the pressure on wage growth, the acquisition of AWT, the expected increase in charges for access to infrastructure and political turmoil, “- added.

DM PKO BP predicts that PKP Cargo revenues between 2015 and 2016 will amount to 3.9 billion and 4 billion zł zł. In their view, the EBITDA in 2015 will amount to 689 million zł, and 2016 years will increase to 810 million zł. Net profit may reach this year 207 million zł, and the next 257 million zł.