Czech brokerage has Romanian construction materials producer’s shares on “buy”

Analysts of Prague-based brokerage company Wood & Company issued a "buy" recommendation for the shares of Romanian construction materials producer Teraplast Bistrita (TRP).

Their target price for Teraplast's shares for the next 12 months is 40% higher than the current trading price.

"We like TeraPlast for its focus on growth, both organically and through acquisitions. From 2015 to 2019, the company grew by 25% per year (16% excluding the acquisition of Wetterbest), to reach revenues of RON 975 million (EUR 210 mln). After three years, when the company has implemented a massive investment program, totaling RON 230 mln, we believe that it will continue its dynamic expansion," reads the report by Wood & Company released on July 8, 2020, quoted by Ziarul Financiar.

The analysts expect Teraplast's revenues to increase by 13% per year in the next years, taking into account a potential slowdown in the construction market in 2021 due to the coronary crisis.

Teraplast, founded and controlled by Romanian entrepreneur Dorel Goia (who holds a 46.8% stake), has a market capitalization of almost EUR 90 mln. The company's shares have gained over 30% in the last 12 months.

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