Machinery
May 12, 2011
Turboatom: Turning up the Power - The saga of Turboatom’s blistering financial performance continued for a sixth consecutive quarter in 1Q11, with revenue jumping by 22% QoQ to USD 34mn and net margin rising by 4p.p. QoQ to 24%. The company’s declared order book has grown by 25% since June 2010, reaching USD 310mn. We estimate that Turboatom will report a top line of USD 150mn for FY11, while posting margins of 31% for EBITDA and 21% for net profit. We confirm our BUY recommendation for the TATM stock and increase our target price to USD 1.09/share, implying a potential upside of 65%.
