The “hold” was kept because the target price is still 12% higher than the current price.
“The dividend discount model points to a 12-month target price of RON285, down 1.5% against our previous target price, as the upside from better operating performance is counteracted by a decrease over the medium term in pay-out ratio, to accommodate the cash outflows related to the Nabucco project,” Raiffeisen analysts said.
The company is involved in the Nabucco pipeline project, where it will have to contribute some RON50 million this year and RON30 million in 2012, according to analyst estimates.
In the project, Transgaz partnered with Austrian OMV, Hungarian MOL, Bulgarian Energy Holding, Turkish Botas and German RWE.
However, the report adds that “for the moment we have not included into our forecasts the construction capex or related costs and revenues associated with the project as we still see some uncertainty regarding gas supply for the project.”
Friday, Transgaz shares closed down a mere 0.04%, at RON253.1. (EUR1=RON4.1298)