Recently, Erste Group initiated an in-depth analysis of One United Properties, seeking to uncover the secrets behind its success and explore the potential for future growth.
The 30-page report, with its inspiring headline: „Yes, development of real estate can still make fun”, is signed by Christoph Schultes, Chief Analyst of the Erste team for Central and Eastern Europe Equity Analysis, specializing in the real estate sector.
Erste Group's analysis delves into the key milestones that have contributed to One United Properties' ascent to prominence and how strategic decisions have yielded impressive results.
One of the key aspects analysed by Erste Group was One United Properties' financial performance. The company's latest financial results showcase robust growth, with a substantial increase in revenue compared to the previous year. By focusing on high-profile projects that redefine urban living and capitalizing on market demand for sustainable developments, One United Properties has managed to position itself as a strong player in the real estate sector.
Christoph Schultes: „One United Properties has a growth potential of 40% in stock price over the next 12 months based on the analysis of discounted cash flow (DCF) and evaluation multiples of other developers in the region”. He estimates that ONE's sales will double by 2025.
With a target price of RON 1.30 and upside potential of more than 40%, Erste initiates its coverage with a „Buy” recommendation.
The analysis highlights how One United Properties has navigated through economic fluctuations and changing market demands. By maintaining a resilient and adaptive approach, the company has showcased its ability to thrive amidst uncertainty and emerge stronger. "The company's experienced management, with a strong track record and a proven business model with remarkable cost margins of over 30%, as well as strong cash flows due to advance payments made by customers, combined with existing land holdings, should provide the company with a bright future", further emerges from the analysis.
This analysis was also reflected in Ziarul Financiar, here.
