Our recommendation for Agora remains Buy, and we have increased our target price to PLN 14.5/share, which is 39% higher than the current market price. For the second year in a row, Agora remains the best investment proposition in the TMT area among entities listed on the Polish stock market.
We consider Agora to be an 'absolute top pick' for 2023 and maintain this statement for 2024. We would like to express our sincere appreciation for the leadership provided by Agora's Board of Directors, and in particular its CEO, over the past several challenging years. We believe that Agora now has a qualitatively different perspective on its operations. Having demonstrated resilience in exceptionally difficult conditions, we believe the company is well-positioned to secure a strong position as one of Poland's leading and fastest-growing media/entertainment companies.
It should be noted that the valuation model we are presenting may exceed the targets set in the material 'Agora Group's Strategic Directions for 2023-2026' adopted by the company's Board of Directors in April 2023 at several points. Therefore, our approach may carry a significant risk of error. As a reminder, the company's strategy aims to achieve a minimum target of PLN 200 million EBITDA (excluding IFRS 16) by 2026. Our current model assumes that the company will generate EBITDA (excluding IFRS 16) of PLN 204.7 million and PLN 250.9 million in 2025-2026, respectively. These figures have been revised from PLN 180 million and PLN 226 million, respectively, in our previous model.
