Raiffeisen Bank Affirms Romania's Transgaz at 'Buy'

Raiffeisen Bank on Wednesday affirmed its'buy' recommendation on Romanian gas pipeline operator Transgaz [BSE:TGN], setting a 12-month target price for the stock of 340 lei ($81.2/76.5 euro).

The bank said in a statement that even though the company'sgenerous capital expendituresmight require the pay-out to be limited to 50%, it would generate growthin the medium term.Transgaz'sprofit, as well asdividends, would be enhanced by efficiency gains, it added.

" [...] we no longer see a risk that the transit business would be significantly reduced in the medium term," the bank said.

Transgaz is listed on the Bucharest bourse where it is a component of the blue-chip BET index. The company’s shares were trading up 0.37% at 272 lei by 1635 CET on Wednesday.

Source: SeeNews