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Egnatia adjusts downwards Louis TP

12/12/2007 13:20
In its latest report for Louis, Egnatia Financial Services adjusted downwards to €0.72 the Target Price of its share. “This implies a 36% upside potential from the stock's current price and thus, our recommendation is maintained to Buy”, the report said.

“Our adjustments lead to a bottom line for FY07 of CYP 10.0m against our previous estimate of CYP 12.9m. Going forward, we expect net profit (after minority interest) to reach CYP 11.4m in FY08 (-17.7% of our previous estimate), whilst for FY09 our bottom line figure stands at CYP 12.8m”, the report added.

The analysts believe that the impact from the lost Sea Diamond is quantified by the management around CYP 7.9m, which we adopt in our estimates as a one-off expense and thus adjusting the cruise division's operating profitability accordingly. “Regarding cruise operations, revenues will come up lower than previously forecasted mainly due to the reduction in the fleet number from 14 ships to 10. However, as from 2009 the growth rate of the revenue line will be positive”, the report concluded.