Analysts see great potential in small companies
22:55
The stock exchange management board approved the list of 61 companies qualified for the third edition of the Analytical Coverage Support Program (PWPA). A day later, there were four more. The analysts got down to work, which has resulted in 25 reports, of which more than half concerns companies that have not been covered so far.
It is in their case that the differences between the market valuation and the one resulting from the assumptions adopted by analysts (and sometimes also comparisons to other companies in the industry) are the greatest. According to analysts, as much as on average 48 percent more than the market is worth the 13 companies they examined for the first time.
Therefore, it is worth recalling the list of companies to which analysts will pay attention under the WSE program for the first time (or for the first time after many years). These are Biomaxima, Action, Gamivo, ATM Grupa, ML System, Point Pack, SFD, Ultimate Games, Prochem, Mostostal Zabrze and Pozbud.
As a rule, analysts' valuations are based on assumptions concerning, inter alia, dynamics of revenues, operating costs, cost of capital, investment outlays. In the case of smaller companies, it can be assumed that they are burdened with an above-average risk, which is sometimes admitted by the analysts themselves. Therefore, it is worth reading carefully the reports available on the websites of brokerage houses to learn about the assumptions, forecasts, and risk factors.
