ALE PW

Allegro.EU Societe Anonyme

TMT, Consumer


Presented:03/05/2021
Price:PLN64.00
Cap:$17.48B
Current Price:PLN34.77
Cap:$9.81B

Presented

Date03/05/2021
PricePLN64.00
Market Cap$17.48B
Ent ValueN/A
P/E RatioN/A
Book ValuePLN7.91
Div Yield0%
Shares O/S1,023.26M
Ave Daily Vol1,718,793
Short IntN/A

Current

PricePLN34.77
Market Cap$9.81B
Allegro.eu SA operates as a holding company which engages in the management of e-commerce platforms. It sells variety of categories including automotive, home and garden, books, media, collectibles and art, fashion and shoes, electronics, kids, health and beauty, sports and leisure, and supermarket on e-commerce marketplace. The company was founded on May 5, 2017 and is headquartered in Luxembourg.

Publicly traded companies mentioned herein: Alibaba Group Holding Ltd (BABA), Allegro.eu SA (ALE PW), Alphabet Inc (GOOGL), Amazon.com Inc (AMZN), Facebook Inc (FB)

Highlights

The presenter is long shares of Allegro.eu SA (ALE PW), a Polish e-commerce marketplace that he likens to AMZN. ALE IPO’d in October 2020 at PLN43 per share and reached the low-PLN90 range by November before trading down to its current PLN64 per share (~$17B market cap). The presenter is excited about ALE’s prospects over the next 3 – 5 years due to its strong brand, dominant market share in an attractive e-commerce growth market, impressive margin profile, and several sources of optionality that can drive EBITDA meaningfully above consensus expectations. His base case outlook models 20% annual EBITDA growth through 2025 with additional upside, and he applies 30x EBITDA multiples to his 2022 and 2024 estimates to reach one-year and three-year price targets of ~PLN85 and ~PLN150, respectively.

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Idea Discussion

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