Announcement.

DM BDM raises the target price of Budimex to PLN 118.5 from PLN 108.7 previously

On the day the report was issued, the price of Budimex shares was PLN 130.
"The Budimex exchange rate in the current cycle has been temporarily downgraded even below PLN 100. From mid-October, the share price has broken off well by around 30%. A derivative of the results was also an increase in expectations regarding the dividend in 2019. The company also managed to slightly increase (for the first time in a year) the balance of provisions for losses, which may give rise to faster reconstruction of the gross margin on sales in the construction segment. - written in the report.
Analysts, however, emphasized that in their opinion this will not be a lasting trend. They expect that the decline in margins should culminate only around mid-2019, when many contracts concluded in 2015-17 end.
"Historically, the best moment for the long-term purchase of Budimex shares was when the price index in construction not only slowed down its growth (which has not yet occurred in this cycle), but passed from positive to negative dynamics" - it was written.
The report shows that the forecasted revenues for 2018 are to amount to PLN 7,403.7 million, and for 2019 PLN 7,528.5 million.
"In relation to the previous recommendation, we slightly raised our estimates of results for 2018-19. In the first case this is mainly due to the better than previous assumptions for the third quarter of 2018 (we did not include Elektromontaż Poznań sales, among others) "- it was written.
However, in the second of the higher processing in the construction part (which, however, has a negative effect on the cash position, which may be under the greatest pressure in mid-2019) and raising assumptions for the development part (in the third quarter of the company for the first time the first since the beginning of 2017 has increased the level of the current offer) "- added.
The report, which was created by Krzysztof Pado, was first made available on December 11, at 08.47.

Source: company website, investor relations, current and periodic reports.

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Company information
Company name:Budimex SA
ISIN:PLBUDMX00013
NIP:526-10-03-187
Adress: ul. Stawki 40 01-040 Warszawa
Phone:+48 22 6236000
website:www.budimex.pl

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