Unibep S.A. – Analytical report

Information about Dariusz Blocher's resignation from the position of president of the management board and transfer to the supervisory board contributed to the decline in the price of Unibep shares by almost 25% in recent weeks. The company's capitalization decreased by approximately PLN 60 million, which is approximately the amount it increased at the turn of April and May last year, when the recruitment of Mr. Blocher as president was announced. To simplify, it can be summed up that the shareholders who sold the shares believed that the company was returning to its starting point, i.e. April 2023. In our opinion, this is not the case. We believe that President Blocher, together with his colleagues, has introduced positive changes in the organization, primarily in the field of bidding and ongoing monitoring of contracts, which will result in a significant improvement in Unibep's financial results in the next 2-3 years. Due to the lower value of orders obtained in the last few months, we are slightly adjusting the forecasts for the capital group for 2024-2026 downwards and slightly lowering the target price per share - from PLN 12.8 to PLN 11.7 in a 9-month horizon. In the longer term, we see potential for continued improvement in financial results and a significantly higher share valuation).