Kruk (KRU.WA): Too cheap to ignore – Upgrading to Buy

研报英文原文证据摘录

Kruk (KRU.WA): Too cheap to ignore – Upgrading to Buy

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29 Jun 2026 23:00:00 ET │ 35 pages

Kruk (KRU.WA)

Too cheap to ignore – Upgrading to Buy

CITI'S TAKE

1Q26 results were lower than expected (link), but mainly due to lower-than-

anticipated gains on revaluations, which we think should be treated as a Buy ↑ from Neutral

one-off, and higher court costs, which we see as a shift between quarters.

Price (29 Jun 26 17:00) Zl404.30In our opinion, the market overreacted to the 1Q26 results. We reduce our

estimate of 2026 EPS by -1% while for 2027-29 we leave our forecasts Target price Zl525.00

broadly unchanged. We maintain our TP of Zl 525, but due to the share price Expected share price return 29.9%

decline we upgrade the stock to Buy from Neutral. We continue to note a

lack of obvious business catalysts for a re-rating, but at FY2026E PE of 7.3x Expected dividend yield 5.8%

and dividend yield of 5.8%, we view the stock as attractively valued and the Expected total return 35.6%

low valuation itself as a catalyst for re-rating. Market Cap Zl7,901M

US$2,127MWeak 1Q26 — Kruk’s 1Q26 net profit came in -4% vs. consensus collected by PAP

and -17% vs. Citi estimates. The earnings miss was driven by lower-than-expected

revenues, affected by lower-than-projected revaluation gains and by higher-than-

expected opex (+2% vs. Citi, mainly due to higher than Citi anticipated court and tax

costs). Net profit was positively affected by a low effective tax rate of 3%. Price Performance

(RIC: KRU.WA, BB: KRU PW)

We expect higher revaluation gains in next quarters — In 1Q26, in Poland,

revaluations declined to Zl 57m from Zl 124m in 4Q25 and Zl 61m in 4Q24; in

Romania, they reached Zl 29m vs. Zl 28m a quarter ago and Zl 54m a year ago; and

in Italy, they amounted to Zl +8m vs.