Analysts say Teraplast is not for anyone looking to make quick earnings

One week after the IPO was launched, only 1.65 percent of the Teraplast offer was subscribed. The largest orders were made at the minimal price of RON 1 (€0.27) per share. The IPO will end this week.

“Given current market conditions, based on which nothing is quite cheap enough, the IPO price could stall the growth potential of shares in the short run, which could scare off investors looking for quick profits,” according to EFG Eurobank Securities analysts. Both the latter analysts and those of Intercapital Invest say that Teraplast investments will be profitable in the long term. According to Intercapital Invest, the Teraplast IPO is recommended for investments of over two years.

According to EFG, the price per earnings (PER) ratio is estimated at 15.17 for 2008, for the bottom price, and 21.23 for the top price tag of RON 1.4 (€0.38) per share.