Baltic market review, week 42

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Autorius: DnB NORD bankas Data: 2007-10-15 11:29 Komentarai: (0)
TEO LT, Lithuanian supplier of voice, broadband, and IPTV services, is to announce its Q3 result on Tuesday. We estimate y/y sales growth to reach +5%, for a total of LTL 194M. The EBITDA margin should decline to 44% (LTL 86M), whereas the net profit is expected to reach LTL 36M, a 6% increase y/y. Deviations from the EBITDA target, being the main measure of company’s financial health, would result in corresponding adjustment to the share price, although only significant changes could shake this liquid and slow-moving position.

Eesti Telekom, Estonian telecommunications operator, will announce its Q3 result on Friday. We expect the company to report sales of ca EUR 100M, with an EBITDA of EUR 30M. Significant deviations would quickly adjust the share price to account for the new outlook.

Lifosa, Lithuania based fertilizer producer, will announce its Q3 result on Friday. We expect the company to generate sales of at least LTL 280M, resulting in an EBITDA figure of LTL 85M, and a net profit of at least LTL 65M. If these estimates prove to be accurate, however, last 12-month P/E figure would dip below 10 again, potentially urging investors to further increase the share price, despite the already superior year-to-date performance of +200%.

Tallinna Kaubamaja, Estonian retail store operator, has announced establishment of TKM Beauty, a pan-Baltic beauty store chain operator. We expect the news about the upcoming expansion to boost investor interest in the position, resulting in short term appreciation of the share price.
 
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