HALISTER1: Mavi Extends Gains as HSBC Rates New Buy on Market Share, Brand

Mavi Extends Gains as HSBC Rates New Buy on Market Share, Brand

(Bloomberg) -- Mavi Giyim shares advance as much as 3% to 54.50 liras, extending gains since the Turkish jeansmaker’s June IPO to 28%, after HSBC initiates the stock with a buy rating.
  • Mavi now has four buy ratings, 0 holds or sells, according to Bloomberg data
  • “Mavi has sector-leading sales growth rates, strong market share and high retail expansion in Turkey, a diversified product portfolio and a growing brand image,” Bulent Yurdagul, analyst at HSBC Securities, writes in report
    • 12-month PT set at 64 liras, implying 21% gain from yesterday’s close
    • Expects Mavi to add ~350bps of Ebitda margin over the next 5 years based on strong sales growth, economies of scale, expansion into higher-margin retail operations and stronger pricing power from active category management
  • NOTE: Shares have gained for five consecutive days, up 11% over the period
To contact the reporter on this story: Tugce Ozsoy in Istanbul at tozsoy1@bloomberg.net To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net Beth Mellor

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
MAVI TI (Mavi Giyim Sanayi Ve Ticaret AS)

People
Bulent Yurdagul (HSBC Securities Asia Ltd)

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