Raiffeisen also upgraded its recommendation on Transelectrica’s shares to “hold” from “sell,” as it estimates provisions level will decline in 2011.
“Due to the lift in quantities transported and the lower costs base, we see the company’s operating profit surging at a more rapid pace,” the Austrian financial group said.
At around GMT1300 in Bucharest, Transelectrica traded down 0.46% at RON19.6 a share.
Transelectrica is 73.64% owned by the Ministry of Economy, while investment fund Fondul Proprietatea owns 13.5% of the company’s shares.
The company reported a net profit of RON9.55 million in 2010, up 55.7% on the year. For 2011, Transelectrica estimates a net profit of RON16.5 million.