UPDATE: Goldman Sachs Starts HepsiBurada (HEPS) at Buy

July 27, 2021 2:16 AM EDT
Get Alerts HEPS Hot Sheet
Price: $6.38 -6.59%

Rating Summary:
    3 Buy, 2 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 8 | New: 46
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(Updated - July 27, 2021 5:27 AM EDT)

Goldman Sachs analyst Asli Tuncer initiates coverage on HepsiBurada (NASDAQ: HEPS) with a Buy rating and a price target of $25.90.

The analyst comments "We forecast 57%/51% GMV/revenue CAGRs over 2020-25, driving an increase in HepsiBurada’s share of overall Turkish retail spend from c.2% in 2020 to c.9% in 2025. In line with our expectation of an acceleration in online penetration in the Turkish market, we forecast a 22% CAGR in the company’s active customer base, coupled with a 27% CAGR in order frequency, driving a 55% CAGR in total orders over 2020-25. We forecast a path to profitability for HepsiBurada, with its EBITDA/GMV margin improving from -0.5% in 2020 to +3.7% by 2025, driven by: (1) marketplace expansion and (2) a gradual mix shift towards categories with higher take-rates such as fashion/lifestyle, home and garden. We expect the company’s net cash position to reach c.TRY11.7 bn by 2025 from TRY100 mn as of end-2020, allowing management to consider several options in terms of uses of cash."

For an analyst ratings summary and ratings history on HepsiBurada click here. For more ratings news on HepsiBurada click here.

Shares of HepsiBurada closed at $13.28 yesterday.

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