The principal risk they see in Romania include a forced landing of the economy, which would lead to even lower evaluations in a short period. On the other hand, EFG believes that once the markets rebound, Romania will return to the attention of investors. “We are expecting companies to put up resistance to the crisis, although some sectors will be more affected. This will translate to even more attractive indicators, although analysts have reduced their estimates,” according to EFG Eurobank Securities.
Analysts are expecting a 100 percent rise in the price of the Transgaz national company shares, and that it will do better than the rest of the market. “Transgaz has not spent all the money from the IPO [Ed. n. initial public offer], which will allow the company to distance itself from the economic turbulence. Our recommendations are based on the fact that Transgaz will retain its dividend policy,” added EFG representatives. Transelectrica is in a similar situation, although the company is at risk due to the depreciation of the national currency. “Any depreciation of the leu is felt in the profit and loss accounts of the company. However, we are expecting Transelectrica to benefit from future plans and are estimating a doubling of the target price for company shares,” said EFG analysts, to RON 20.6 per unit.
The brokerage company expects Petrom shares to increase over 2.5 times, while growth for the SIFs could exceed 220 percent. According to EFG representatives, the target prices of companies are valid for the time being, but these are in the process of being modified. Manuela Ogrinja, Head of EFG Eurobank Securities Analysis Department indicated that the modifications will come once the companies submit their financial results.
