HALISTER1: Sabanci Raised to Overweight on Re-rating Potential: MS

Sabanci Raised to Overweight on Re-rating Potential: MS

(Bloomberg) -- Planned listing of Enerjisa Enerji and potential buybacks are catalysts for re-rating Sabanci Holding shares, Morgan Stanley analysts Muneeba Kayani and Nida Iqbal write in report dated Sept. 11.
  • Sabanci Holding’s shares imply a negative value for Enerjisa, though Morgan Stanley’s new analysis suggests there is value in Enerjisa with visible Ebitda growth and low leverage
    • Says “new analysis of the dynamics in the distribution business (Enerjisa Enerji) suggests value of 5.8b liras (Sabanci stake) is reasonable
    • Negative value ascribed by the market for the unlisted assets seen as “too harsh”
  • Free cash flow yield seen “compelling” at more than 20% and could support buybacks
  • Upgrades Sabanci Holding to overweight from equalweight; PT raised to 13.10 liras vs 11.40 liras, implying ~25% gain from Monday’s close
  • NOTE: Sabanci Holding shares rose 15% this year compared with 40% gain for Borsa Istanbul 100 Index
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 John Viljoen

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
0987653D TI (Enerjisa Enerji AS)
SAHOL TI (Haci Omer Sabanci Holding AS)

People
Muneeba Kayani (Morgan Stanley)
Nida Iqbal (Morgan Stanley)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283