Banks, Financial Services, Lithuania, Textile

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 13:54

Swedbank reiterates Neutral, EUR 2.9 price target on Lithuania's Apranga

BC, Vilnius, 05.01.2016.Print version
Swedbank's analysts on Tuesday left their target price for shares in Apranga, the leading Baltic clothes retailer, unchanged at 2.9 euros per share and reiterated their Neutral recommendation on the stock, writes LETA/BNS.

Swedbank's analysts estimate in an equity research note that Apranga's consolidated net sales rose by 10.8 % in the fourth quarter of last year from a year ago to around 45.3 mln. euros, exceeding their forecast by 2 %, and that sales in the full year 2015 grew by 8.4 % to 159 mln. euros.


They estimate that the group's EBITDA last year edged down by 1.1 % to 18.7 mln. euros and the EBITDA margin fell to 11.8 %, from 12.9 % in 2014.


"We believe that most of the challenges of 2015 will be less acute this year: the tough competition with H&M after its aggressive roll-out in 2013-2014 will level off, the decrease in the number of Russian and Belarusian customers will have a milder negative effect and the temporary shift in consumer focus to large-ticket items, such as cars and housewares, will wane," the analysts said.


They forecast that Apranga's consolidated net sales this year will increase by 8 % to 171 mln. euros, EBITDA will rise by 10.7 % to 20.7 mln. euros and the EBITDA margin will reach 12.1 %.

Apranga's shares, quoted on the blue-chip Main List of the Nasdaq Vilnius stock exchange, closed at 2.58 euros on Monday.






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