Morgan Stanley increased OPAP’s target-price to EUR15 from EUR12, retaining its underweight rating.
Morgan Stanley commented that the outlook for OPAP is more uncertain than ever as its monopoly is ending.
“While the valuation is low, we remain underweight due to downside risks as it transitions to a competitive market”, according to a report.
Tax changes increase earnings per share by 20-40% and target-price to EUR15, said the firm, while gambling is expected to grow by 50% in Greece to reach 1.6% of GDP by 2014.
Regarding the profitability of machines, Morgan Stanley expects to contribute to EPS by just EUR0.16, while OPAP’s EBITDA are more than EUR900m compared to EUR700m of the 10 largest online operators combined, so the internet is unlikely to be material.
Regarding EPS, the firm’s base case is EUR1.98 in 2014, but a range from EUR1.1 to over EUR3 is plausible.
Nomura said that it sets a buy rating on OPAP, while increases its target-price by 15%, at EUR16.9.
It believes consensus already factors a suitably pessimistic earnings scenario in 2011/12, while OPAP’s medium-term strategy is centred on continuing to monetise its core products by further developing its domestic franchise, which includes defending and extending the existing concession.
Finally, EPS are expected to increase by 30% ahead due to tax changes, according to Nomura΄s report.
Morgan Stanley commented that the outlook for OPAP is more uncertain than ever as its monopoly is ending.
“While the valuation is low, we remain underweight due to downside risks as it transitions to a competitive market”, according to a report.
Tax changes increase earnings per share by 20-40% and target-price to EUR15, said the firm, while gambling is expected to grow by 50% in Greece to reach 1.6% of GDP by 2014.
Regarding the profitability of machines, Morgan Stanley expects to contribute to EPS by just EUR0.16, while OPAP’s EBITDA are more than EUR900m compared to EUR700m of the 10 largest online operators combined, so the internet is unlikely to be material.
Regarding EPS, the firm’s base case is EUR1.98 in 2014, but a range from EUR1.1 to over EUR3 is plausible.
Nomura said that it sets a buy rating on OPAP, while increases its target-price by 15%, at EUR16.9.
It believes consensus already factors a suitably pessimistic earnings scenario in 2011/12, while OPAP’s medium-term strategy is centred on continuing to monetise its core products by further developing its domestic franchise, which includes defending and extending the existing concession.
Finally, EPS are expected to increase by 30% ahead due to tax changes, according to Nomura΄s report.
