Top picks (Oyak Yatırım)

We add INDES and ODAS

We are including Odas in our model portfolio as we think that the significant (highest among BIST-30 stocks) ytd underperformance of the company shares seems to be unwarranted even assuming the full payment of TL1.2bn amount related with EMRA's investigation that appeared in the media last month. Odas is the most undervalued energy stock listed on the BIST considering the last 12 month EV/EBITDA multiples. CANTE, the 77% listed subsidiary of Odas, announced strong 4Q22 financials on January 26th, which imply also strong financials for Odas which is expected to release its financials until March 13th. Furthermore, as CANTE operated with a similar capacity utilization so far in 1Q23 to 4Q22, we expect solid EBITDA performance of Odas to continue in 1Q23 as well. The company shares trade at very attractive 2.4x EV/EBITDA and 2.7x P/E on our 2023 forecasts.

We also decided to include INDES to our model portfolio after its strong 4Q22 results with robust revenue growth, improving margins and increasing net cash position thanks to strict net working capital management. We expect 2023 to be another strong year for the ICT (information and communications technology) sector and like the company's leading distributor position in the sector. According to our conservative 2023E estimates, the company shares trade at 6.1x P/E and 2.1 EV/EBITDA multiples. We have an Outperform rating for INDES with a target price of TL30.98/share which corresponds to 68% upside potential at current market level.

Our model portfolio has outperformed BIST-100 by 1% since our last reshuffle with 24th February close. Current portfolio includes TUPRS, MGROS, AKBNK, KCHOL, SISE, THYAO, MAVI, DOAS, YATAS, AKGRT, ODAS and INDES.


Oyak Yatırım Menkul Değerler A.Ş.
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                               Yasal Uyarı
 
 Burada yer alan yatırım bilgi, yorum ve tavsiyeler yatırım danışmanlığı kapsamında değildir.Yatırım danışmanlığı hizmeti ; aracı kurumlar, portföy yönetim şirketleri, mevduat kabul etmeyen bankalar ile müşteri arasında imzalanacak yatırım danışmanlığı sözleşmesi çerçevesinde sunulmaktadır.Burada yer alan yorum ve tavsiyeler, yorum ve tavsiyede bulunanların kişisel görüşlerine dayanmaktadır.Bu görüşler mali durumunuz ile risk ve getiri tercihlerinize uygun olmayabılır.Bu nedenle, sadece burada yer alan bilgilere dayanılarak yatırım kararı verilmesi beklentilerinize uygun sonuçlar doğurmayabilir.