Clal Finance Batucha Ltd. today published a update on Kardan NV (TASE: KRNV;AEX:KARD) and its subsidiaries, in view of the company’s impressive 660% return on the Tel Aviv Stock Exchange (TASE) since the company restructured three and half years ago. For the sake of comparison, the Tel Aviv 100 index has risen 168% over the same period.
Although Kardan has been one of the best performing TASE stocks in recent years, Clal Finance Batucha warns, “Despite the praise we’re heaping on Kardan, we believe that at the company’s present price, the burden of proof is on the its management.” The investment house gives Kardan an “Outperform” rating.
Clal Finance Batucha believes that real estate could be a source of added value for Kardan, through rapid development of Global Trade Centre Poland SA (WSE:GTC) (GTC Poland). However, “value can be obtained through direct investment in GTC Poland,” says the investment house. The investment house also believes that Kardan can add value through its financial holdings Kardan Financial Services BV and its subsidiaries TBIH Financial Services Group NV and TBIF Financial Services BV.
Clal Finance Batucha also believes Kardan’s water engineering consultancy arm Tahal Group is a potential source of future development. “The present pricing already partly reflects a possible jump in value.”
Published by Globes [online], Israel business news - www.globes.co.il - on May 24, 2007
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