The company on: Rainbow Tours improves performance. It will record? – Money.pl

The company on: Rainbow Tours improves performance. It will record? – Money.pl

2014-09-09 11:45

Baszczyński Gregory, president of Rainbow Tours [photo: press materials]

From the beginning, the shares of the second largest tour operator in Poland rose by nearly 50 percent. Upside potential of as many analysts see a Brokerage House. It would be a historical record. The high valuation is the result of a very optimistic forecasts earnings in the coming years. Profit for the entire 2014 years is expected to exceed 22 million zł.

Brokerage BGZ recommends buying shares of Rainbow Tours, setting a price target of 24.85 zł. The market price fluctuates at the moment around 17 zł. This means that the potential for growth of nearly 50 percent.

The recommendation was issued on September 1 and, interestingly, from that day takes a series of six consecutive upward sessions. Share price at that time increased from 14 to 17 zł, which means gains of 20 percent. Potential analysts say BGZ is still very large. Ultimately, they value the one Walor for nearly 25 zł. This would be a record. The previous maximum is 18.4 zł in February of this year.

– Although we forecast a slowdown in growth in the next few years we see a significant undervaluation of Rainbow Tours. Analysts estimate that in 2014 net profit to rise to 22.6 million zł, and in 2015 to 27.8 million zł. Last year the company earned less than on a purely 14 million zł.

– We expect to maintain the current, favorable trends in the second half of the year, which is confirmed by the high dynamics of the pre-season Summer 2014 and Winter 2014/2015 – written in the recommendation.

source : Money.pl

A very large increase in profits in the last year is the result of a recovery in the industry, after numerous falls travel agencies in previous years. After the first six months of this year, the result is a lot higher year on year. BGZ DM Analysts estimate that by the end of December Rainbow Tours will record more than 22 million zł net profit.

– In the long term, together with increasing income of Polish consumers, we should also observe higher and higher expenditures on trips. Above it on the Polish market the services of tour operators use a much smaller percentage of people than in Western countries, which also will support the development of travel agencies. Rainbow Tours has gained in recent years on the problems of their smaller competitors, promoted since the IPO from the seventh to the second position among Polish tour operators. The company consistently develops the offer, including the more exotic-margin trips and round trips – BGZ analysts estimate.

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