Experts predict rise in capitalization of six agricultural companies
2012-01-30 16:27:46
Capitalization of six Ukrainian public companies working in the agricultural sector (Astarta, Avangard, Kernel, Milkiland, MHP and Mriya) could rise from 20% to 100% this year, with a favorable situation on the stock markets, as evidenced by Dragon Capital's annual forecast for these companies' equity prices.
"We recommend buying securities of all the six companies included in the report, primarily MHP. Avangard is our second best choice. Our third strongest recommendation is for Milkiland," the relevant paper reads.
"Stock prices can rise in 2012 due to greater investor attention to the strong fundamental indicators of companies and less attention to macro risks, which will be reduced due to positive developments in the negotiations with Russia, further development of the IMF program and continuation of cooperation with the EU," Tamara Levchenko, a DC senior analyst, said.
"The Ukrainian agribusiness is quoted with an average 44% discount to agricultural companies in the developed markets in terms of 2012E EV/EBITDA," the expert added.