Threats and opportunities
The evolution of demand along with the macroeconomic environment are beyond the company's control, yet they are among key drivers of its operational / financial results. (1) Regulatory changes, (2) technological progress, (3) competitive pressure and (4) the ability to adapt to market trends are identified both as major business opportunities and risks. We believe, however, that Newag has expertise and organizational capabilities to effectively address the these challenges.
Valuation and recommendation
The weighted average of DCF and comparative valuation implies a Dec’24 TP of PLN25.0/share (39% upside). In the effect, we issue an Outperform rating for the stock.
