Buy, Hold, Sell – parquet

source: Fotorzepa

by Grzegorz Psujek

Latest recommendations for companies in the Warsaw Stock exchange.

“Sell” LPP

Analysts DM BOS in a report dated July 31, they lowered the target price for LPP to 4502.7 zł of 5.002 zł, keeping the recommendation “sell”. Experts assume in the second half of the year to maintain the gross margin at a level similar to last year, primarily due to the USD / PLN. They assume that in the whole 2016. Company will record margin decline by 2 percent.

On the other hand, analysts Trigon DM lowered the target price for LPP to 3,400 zł from 3,800 zł, also supporting the recommendation “sell”. In the opinion of experts reported last week by the LPP sales data July were much more important than the weak, the preliminary quarterly results.

– the surprise is the decline in margin realized in July. the achieved level of 38 per cent. of the first margin was historically low – indicated.

Trigon DM believes that now the market should begin to discount a scenario of further significant decline in the gross margin on sales in the coming months.

– Once part of such a large erosion of the first margin in July, may of course be explained by the appreciation of USD to PLN. However, in our opinion, the main factor decline is the intensification of competition in the segment of fast fashion clothing market in Poland, which we interpret as the next stage of price war among the three major players (LPP, Inditex, H & amp; M) – were added.

Analysts estimate the sales results for july, the scale of decline in the first margin in the third quarter should be greater than in the second quarter at a little slower pace of growth in SG & amp; a. They predict a decrease in EBITDA in the third quarter by 40.5 percent. year on year to 97 million zł.

“Buy” Neuk

Analysts DM BOS in a report dated July 31, put target price Neuki to 410.6 zł from 379.58 zł. maintained the recommendation “buy”.

– Decent growth in the wholesale pharmaceutical market in conjunction with a slight weakening of the competitive pressures and improved financial condition of pharmacies (price increase supplements) should contribute to financial results in the second quarter Neuki – experts say.

– We expect good consolidated results (to be released August 29), which should allow the company to achieve full-year net profit in accordance with the forecasts of the board (100 million zł) – added.

“buy” Vistula

DM BOS in a report dated July 31, raised the target price for Vistula to 3.8 from 3.6 zł zł, upholding the recommendation “buy”. Analysts estimate that the company’s results for the second quarter should be decent, mainly due to the revenues and stable margins. They estimate that in 2016. Company will generate 36.1 million zł net profit of 67.2 million zł EBITDA on revenues of 597 million zł.

“Neutral” ING Bank Slaski

Analysts Vestor DM in the report of 8 August lowered their recommendation ING Bank to “neutral” from “accumulate.” the target price per share of the company increased to 142 from 135 zł zł.

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