We upgrade to BUY from Hold
on recent weakness
We reduce our target price for Tekfen Holding from TRY7.90/share to TRY7.70/share on the back of a higher risk-free rate (USD-based, up from 4.5% to 6%), which is partially compensated by the higher FX rate used to convert the USD based TP to TRY. Following the recent share price weakness, we upgrade our recommendation from Hold to BUY.
We increase our TRY-based forecasts on the back of higher FX rate
We increase our TRY-based FY13E EBITDA by 6% and FY13E EPS by 3%, reflecting higher FX rates. Based on 1Q13 results, there could be further upside to our agri segment estimates. However, DAP prices remain weak, and we expect a lag for higher FX rates to be reflected in prices. Therefore, we prefer to err toward caution until there is further visibility.
We reduce our target price for Tekfen Holding from TRY7.90/share to TRY7.70/share on the back of a higher risk-free rate (USD-based, up from 4.5% to 6%), which is partially compensated by the higher FX rate used to convert the USD based TP to TRY. Following the recent share price weakness, we upgrade our recommendation from Hold to BUY.
We increase our TRY-based forecasts on the back of higher FX rate
We increase our TRY-based FY13E EBITDA by 6% and FY13E EPS by 3%, reflecting higher FX rates. Based on 1Q13 results, there could be further upside to our agri segment estimates. However, DAP prices remain weak, and we expect a lag for higher FX rates to be reflected in prices. Therefore, we prefer to err toward caution until there is further visibility.