Brokerage house BRK Financial Group (BVB: BRK) sees the shares of construction materials producer TeraPlast Bistriţa (BVB: TRP) at RON 0.46 in the next 12 months, up almost 10% from the current trading price, according to Ziarul Financiar.

BRK recommends investors maintain their positions. 

"Potential risks to our recommendation include fluctuations in raw material prices, delays in financing infrastructure projects, reduced demand in European markets, increased operational and financing costs, as well as tax changes," the research note reads. 

The 10% growth seen by BRK would come as a recovery after the deep plunge taken over the past year following losses (mainly generated by the packaging segment) recorded in 2024. The company expects significant recovery in 2025.

The company, with a RON 1 billion (EUR 200 million) market capitalisation (March 5), saw the price of its shares dropping by 29% y/y and reported RON 20 million (EUR 4 million) losses for 2024 after a thin RON 1.1 million profit in 2023 that was not distributed as dividends last year. 
On the upside, the company is expanding abroad at a significant pace. 

TeraPlast Group recorded a 34% increase in revenue in 2024, reaching RON 897.9 million. This growth is generated by an increase in sold volumes, the launch of operations at the Opal stretch film factory, and the consolidation of results from companies acquired in 2024, the company's FY 2024 report reads.

EBITDA remained at a similar level to 2023, reaching RON 52 million.

"Our strategy for geographic expansion has put pressure on teams, tested shareholders' patience, and impacted profitability, but it was a necessary step. Increasing market shares while we expand is essential to building a solid foundation for future growth," stated Bogdan Crăciunaș, Chief Financial Officer of TeraPlast Group.

iulian@romania-insider.com

(Photo source: Facebook/TeraPlast)