UK investment firm Edison has placed the highest price target put on a Greek share in recent years on Mytilineos, reflecting its large upside potential. Following in the steps of Piraeus Bank, Eurobank, Pantelakis and Wood, Edison raised the target price to 24 euros from 13 euros (+ 85%), giving upside potential of about 50% from current levels (15.94 euros per share).
This is an impressive upgrade for the share of the most diverse and also the most extroverted group in the country, which in recent years has made strong progress and is now marketed as one of the top 4-5 blue chips in the market.
The share of Mytilineos clearly reflects the company’s growth course, while a few days ago, on August 30, it closed at a historic high of 16.19 euros. At the same time, its market capitalization comes in at 2.27 billion euros and is in 8th place on the Athens bourse, leapfrogging companies such as ELPE, Motor Oil, Jumbo, Titan, Terna Energy, Viohalco etc. The target price given by Edison at 24 euros, corresponds to a capitalization of 3.42 billion euros, ie more than one billion euros above current levels.
The group is in the best developmental phase of its history, having become a global and vertically integrated energy organization, expecting record revenues in 2022. With the its new investments, it will become the largest fully integrated producer of aluminum in Europe, while after the merger with METKA it is one of the top ten energy infrastructure manufacturers in the world. It has become a specialized manufacturer of energy projects in Europe, the Middle East and Africa, while in Greece it is the largest independent producer of electricity with more than 1,200 MW in operation. It is now active in 32 countries.
In the last three years it has been making an increasingly green switch, with the aim of significantly reducing emissions by 2030. It attaches great importance to its gradual transition to sustainable energy models through multiple investments in clean energy.
It is no coincidence that the company has a very high rating in all three ESG criteria - Environmental, Social and Corporate Governance. For the past two and a half years, from January 1, 2019, it has been implementing the English Corporate Governance Code, which is perhaps even stricter than the American one.
The group now aims to double in size in 2022, compared to 2020. For 2022, Mytilineos expects operating EBITDA profits of over 500 million euros, as a result of maturing investments and rising aluminum prices. With metallurgy being in a top phase, projects in the Renewable Sources related to green energy are gradually maturing, while the contribution of the new natural gas power plant (CCGT) of 826MW that will be completed will also be important by the end of 2021. The group will enter 2022 with three operating stations and a capacity of 1.6 MW plus.
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