Warsaw Stock Exchange Group
The house always wins, but in this case, it’s the exchange. Long-term tailwinds will out blow short-term headwinds to...
Thesis
The house always wins, but in this case, it’s the exchange. Long-term tailwinds will out blow short-term headwinds to help this company get back to growth. I rate the stock a buy as the shares offer a 50% upside and 15% IRR at the current price.
Summary
Company name: The Warsaw Stock Exchange Group (Gielda Papierów Wartosciowych w Warszawie S.A.)
Ticker: GPW
52-week range: Zl31.00–43.00
Market cap: Zl1.5bn
Price: Zl35.60
Target: Zl52–58
Upside: +50%
Recommendation: Buy
I) Story
Business model
The Warsaw Stock Exchange Group (WSE) is Poland's stock, bond, and commodity market operator. The company charges transaction fees when securities are traded, membership fees to access their market, and subscriptions for data. It gets almost half its revenue from the financial securities market, 36% from the commodity market, and 14% from the sale of market data.