Wood&Co recommends to “sell” Transgaz shares

This is the first recommendation regarding Transgaz by the Czech broker, and is 10 percent lower than the share’s current tag price, of RON 220.5 (€60.07) per share.

However, Raiffeisen Capital&Investment, which brokered the official public listing (IPO) of Transgaz on the Bucharest Stock Exchange (BVB), recommends to “buy” gas transportation company stock and a target price of RON 277.1 (€75.5) per share.

Wood&Co analysts say Transgaz shares are currently trading “in line” with shares of similar companies on European markets, at the level of P/E (price/earnings) and EV/EBITDA (company value/operating profit) indicators estimated for 2008. The broker added that the company’s income will increase in the coming years only as a result of the depreciation of the leu, given that the company has little negotiating power with its main client, Russian Gazprom, and because income from gas transit is to remain steady.