Agriculture
April 27, 2015
Astarta reported its highest¬ever full¬year EBITDA last week at EUR 120mn for FY14 (+84% YoY). A new soybean processing business pushed revenue higher by 8% YoY to EUR 352mn, and there was a positive impact from the hryvnia devaluation on UAH-linked costs (~60% of Astarta’s operating cost structure). Given the Astarta’s recent progress in its business diversification and cost optimization, low devaluation risk, and lack of exposure to Donbass, the company’s stock looks oversold to us at the current trading level. Even with projected lower EBITDA for FY15 at EUR 93mn, we derive a target price for the AST stock at PLN 36.13, suggesting a 51% upside.
