According to a HSBC’s report, earnings resilience has been proved and it forecasts momentum reversing.
Moreover, planned gaming reforms could drive earnings growth and prompt re-rating by alleviating liberalisation fears.
OPAP managed to grow Q3 2010 earnings by 28% year over year despite a sharply contracting economy, according to the report.
In addition, OPAP is about to launch new monitor and direct-draw games, targeting new client segments and beefing up cross-selling.
HSBC raises 2011-12 EPS estimates by 4%-6%, seemingly small but arguably the first upgrades for two years now.
Despite outperforming the local market by 31% during 2010, OPAP trades at 7.5x 2011 underlying Earnings Per Share, while offering dividend and Free Cash Flow yields of 10%-11%. At the same time, net cash amounts to no less than 18% of market value.
capital.gr
http://english.capital.gr/News.asp?id=1113535
