EnglishRaiffeisen Capital & Investments recommend the Turbomecanica shares (TBM) for purchase after having evaluated the cash flow of the company and of similar companies in the US and Western Europe.
Turbomecanica declined in 2006, with revenues remaining at the same level as in 2005 and the profit decreasing especially as a result of the cost of personnel layoffs. Nonetheless, rumors emerged in late 2006 that the company was the potential target of a takeover by United Technologies. The management denied such rumors.
According to Raiffeisen Capital & Investments, the evaluation of the company"s cash flow indicates that the correct value of the capital is 270.7 million RON (80 million EUR) corresponding to 0.77 RON/share on 12 months.
In a relative evaluation, the company was compared with 9 similar companies in the US and Western Europe and the capital stood between 196 and 233 million RON. The 12 month advancement would be 8.5%, whereas the ROI on 12 months would be 14.1% considering the Y2006 dividends of 0.04 RON share.
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