Barclays sees growth ahead for Logista, starts with 'overweight'

Logista Integral SA

01/11/2022 12:36

** Barclays initiates coverage of Logista  LOG.MC  with
"overweight" citing innovation in tobacco, the firm's organic
and inorganic growth and its "significant" cashflow 
    ** The broker says Logista is benefiting from the mix shift
towards Next Generation Products (NGPs) in the tobacco industry
and its end-to-end infrastructure as NGPs requires more services
compared to traditional tobacco products
    ** It also expects new contracts in convenience products and
acquisition of small to mid-sized companies (mainly non-tobacco)
to lead to high-single-digit growth in sales between 2023 and
2025 vs low-single-digit growth in the previous five years
    ** Barclays sees the company's economic sales and adjusted
EBIT in 2023 rising primarily due to the recent acquisitions of
Transportes El Mosca and Carbo Collbatalle
    ** It also sees a significant interest income growth, citing
rising interest rates, and expects potential EPS growth of about
10% annually in the next three years
    ** With its significant FCF, Logista has returned over 1
billion euros of cash to shareholders in dividends since 2015
and has kept a 90% payout policy, the broker adds
    ** Out of 10 analysts covering Logista, nine rate it "strong
buy/buy"​, one "hold" 
 (Reporting by Jakub Olesiuk)
 ((jakub.olesiuk@thomsonreuters.com))