20 Sep 2017 14:39
Edison Investment Research Limited Edison issues outlook on TransContainer (TRCN) 20-Sep-2017 / 14:37 GMT/BST London, UK, 20 September 2017 Edison issues outlook on TransContainer (TRCN) Our increased three-year EBITDA CAGR of 20% for TransContainer is driven by rising rates of 'containerisation' in Russian rail freight, a gathering pace of economic rebound in Russia and strong operating efficiency delivered by company management. Our increased forecasts are the main driver behind an increase in fair value to RUB4,900, which implies 23% upside to current levels. The stock offers investors unique exposure to attractive structural and cyclical growth factors in Russia as well as a management team that has shown its ability to manage the business and cash flows during difficult macroeconomic conditions. We use an average of EV/EBITDA multiples and DCF models in arriving at our fair value of RUB4,900 per share vs RUB3,580 before. Our three-year EPS CAGR is 25%, which looks undemanding given the stock trades on 9.0x FY17 earnings and should be supported by a 4.5% dividend yield. Our fair value offers investors 23% upside to current levels and is supported by strong post-period data from the Russian rail network showing that supernormal growth in rail-container volumes has accelerated since H117 (July 2017 was up 21.3% y-o-y).Click here to view the full report. All reports published by Edison are available to download free of charge from its websitewww.edisoninvestmentresearch.com About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Jamie Aitkenhead, +44 (0)20 3077 5700Roger Johnston, +44 (0)20 3077 5722Industrials@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-investment-research Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv Dissemination of a FINANCIAL NEWS, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement. |
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