Analysts initiate Coverage on Fluidra with the Recommendation to “Buy”
December 17, 2007Coverage on Fluidra as a listed company initiated
on 12 December. The first recommendations, by analysts of BBVA Research
and Citigroup, are positive with the indication to "Buy".
Citigroup states a target price of 7,45 euros and underlines Fluidra’s scarce
dependence on new housing.
The analyst of this bank calculates that about 4%
of the group’s 2007 sales may be related to the residential real estate market in
Spain.
Fluidra stands out due to its leadership in the pool industry with its POOL
division and its future plans are to maintain a high rhythm of expansion with the
opening of new distribution centres, especially in emerging markets. Fluidra
believes that the WATER division has high growth margins, both organically as
well as inorganically.
Fluidra turned over 546 million euros in 2006 and obtained an EBITDA of 79
million euros. During the period from January to September 2007, its business
volume reached 544.7 million euros, which means 26.3% growth over the same
period the year before. The company’s EBITDA in the first nine months of the
year was around 86.5 million euros, which represents 29.5% growth with
regards to the previous fiscal year.
This data, along with a successful business model, which integrates production
and distribution, are the characteristics which serve as the basis upon which
analysts may make their assessments from now on.
Fluidra’s managing director, Eloi Planes, believes "that our share has followed
the evolution of the markets and has a lot of room to increase its value. This is
corroborated by the initial coverage of the analysts”.