JB Capital sees Altri up 49% and GreenVolt gaining 21%
Analysts from JB Capital resumed coverage of Altri. They highlight GreenVolt's IPO, which showed that Altri "is more than pulp."
JB Capital resumed coverage of the Portuguese company Altri, with “buy” rating and a €8.0/share target price. The analysts highlight the newly listed GreenVolt, which showed that Altri “is more than pulp”.
“The IPO [of GreenVolt] provides full visibility on the 2.7 market value of a historically overlooked division, with ambitious growth objectives, 4.7 exploiting a new growth avenue for Altri,” explain analysts João Pinto and Alberto Espelosín in a note released this Monday.
For Greenvolt, JB Capital gives a €6.4 target price, implying a 21% upside. This valuation impacts the target price of Altri, which owns 58.72% of the renewable energy company led by Manso Neto.
“GreenVolt’s current market value implies the market values Altri’s pulp division at an equity value of €725 million,” underline the two analysts.
Despite fears regarding the evolution of pulp prices, JB Capital still considers that Altri’s valuation is “attractive”. And it is even the sector’s favourite within the Iberian Peninsula: “We favour Altri in the Iberian pulp and paper sector. It has an impressive cash generation track record, and compared with Ence, it is more efficient (recent operational performance was significant) and carries no significant legal risks.”
Note: The information presented is based on the investment bank’s note and does not constitute a recommendation by the ECO News. For investment decision purposes, the reader should seek the full note from the investment bank and consult his/her financial intermediary.
