Erste cuts down target price for shares of Romanian water transport company TTS

The analysts of the financial group Erste revised downwards the target price for the shares of Romanian water transport company Transport Trade Services (TTS), citing a faster-than-expected decline in the Ukrainian grain business, on river transport, but mostly in the Constanta port.

The recommendation remains Accumulate.

The new target price is RON 28.06, versus RON 25, the market price as of the date of the report (June 14), down from RON 30.4 target price set as of March 22 when the recommendation was downgraded from Buy to Accumulate.

The continued success of the new logistic chains originating in Odesa and shipping through territorial waters of Romania and Bulgaria has led to a very rapid deterioration of volumes as well as tariffs in this segment, Erste explains on the deterioration in the outlook for the Romanian company whose shares tripled from RON 10 at the time the war in Ukraine began to RON 0 in February 2024.

The market capitalization of TTS is RON 1.52bn (EUR 300mn) after the company’s shares rose by 72% y/y amid a trading volume of 18.5 mn shares (31% of its total number of shares). The company disbursed a dividend of RON 1.14 per share (4.51% yield) from last year’s profit with the dividend ex-date May 24.

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