Agriculture
August 23, 2011
Astarta is on its way to an oustanding UAH 3.6bn (USD 450mn) revenue performance in full-year 2011, if the UAH 1.6bn balance currently on its biological produce account is of any guidance. The company has reported a 46% annualized EBITDA margin for 1H11, well ahead of our FY11 forecast of 35.8%. We leave this forecast unchanged, as we believe Ukrainian sugar prices will fall in 2H11 due to an expected strong harvest. Astarta trades at 2011E P/E of 6.6x and 2011E EV/EBITDA of 6.3x, both of which we view as attractive valuation levels. We reiterate our BUY rating on the AST stock with a target price of USD 39.9 per share.
