MILAN, Sep 4 (Class Editori) - Maire Tecnimont activity is increasingly focused on the technology-driven core business. The company, which leads an industrial group leader in the transformation of natural resources, has secured, through some of its main subsidiaries, orders for a total value of approximately 90 million dollars (82 million euros at current exchange rates) for licensing, engineering services, procurement and construction activities (EPC). The contracts, awarded by some of the most prestigious international clients, were achieved mainly in the Russian Federation and in Europe.
Specifically, Tecminont Russia, subsidiary of the company, was awarded a Lump Sum contract by OOO Stavrolen, a subsidiary of Pjsc Lukoil, for engineering, procurement and construction activities destined to the revamping of a compounding line for an existing polyethylene unit, within the petrochemical complex in the Russian region of Stavropol'.
The other projects were awarded in the oil & gas refining and fertilizers sectors. According to the Ceo of Maire Tecnimont Pierroberto Folgiero this result “confirms our focus in the technology-driven core business. In particular, we are really excited to consolidate the collaboration with Lukoil, by relying on our strong abilities to carry out revamping projects, which are part of our business strategy.”
“We are positive about this news, as we expect these contracts to reveal solid margins,” commented Banca IMI analysts on the Maire Tecnimont stock with a buy rating and a target price of 4.9 euros. For the experts of Mediobanca Securities, even if the news is slightly positive for Maire, it should help the group achieve the goal of a book-to-bill close to 1x for the fiscal year 2019.
“In our opinion, the recent performance of the share price, remains unjustified. It has dropped by 50%, compared to the Ftse Mib index since the beginning of the year, given the strong prospects provided by the management during the latest conference call, after having reiterated all its financial objectives,” pointed out the experts to the investment bank. “We have a target price of 4.60 euros and an outperform rating on the stock. Based on our numbers, this is listed at 5.8 times the 2019 price/profit multiple, which represents a 55% discount compared to competitors.” Yesterday, the stock gained 0.82% at the Milan stock exchange (2.20 euros) and today rose by 2.72% (2.26 euros). (All rights reserved)
(Source:Class Editori)
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