According to the latest report from Eurobank Equities, the target price for Plastika Kritis Group remains at €7 per share, indicating significant upside potential despite intense challenges in the sector during the previous year. The brokerage acknowledges that 2024 brought profitability pressures due to increased operating expenses and limited margins across European industrial sectors. However, it maintains a positive outlook for the Group’s trajectory, forecasting profitability recovery in 2025 and accelerated growth in 2026–2027, thanks to leveraging investments in new production technologies, automation, and capacity expansion. Projections indicate annual EBITDA growth of 11% during 2026–2027, with EBITDA margin expected to move toward 12%.
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The report also highlights the Group’s strong cash flow dynamics, with over 80% of EBITDA converting to operational cash flows. Since 2019, the Group has implemented investments exceeding €190 million, while returning approximately €50 million to shareholders. Net debt remains below 1x EBITDA, confirming the Group’s ability to maintain balance between growth, investments, and dividend distributions to shareholders.
Projections for 2025 and beyond are positive, with expected utilization of recent investments in production and automation enhancing efficiency and profitability over the medium term. Eurobank Equities estimates that the Group will benefit substantially from demand recovery while maintaining its competitive position.
The report concludes that despite short-term challenges, Plastika Kritis Group remains on a growth trajectory with strong fundamentals for creating long-term value and attractive prospects for investors.
