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January 16th, 2020 | 09:31 CET

Buy Homes & Holiday: Analysts see significant upside potential

  • Real Estate
Photo credits: pixabay.com

Homes & Holiday AG should significantly increase sales and earnings in the current year 2020. This is expected by the analysts of GBC Research in their current study. On the basis of the refocusing on the core business on the Balearic Islands, which began in 2019, GBC has valued the specialist for holiday properties using a DCF model and calculated a fair value of EUR 1.05 per share. Based on the current price level of around EUR 0.40 per share, the analysts see high potential and have given the share a Buy rating. The potential market potential is very high.

time to read: 1 minutes | Author: Mario Hose
ISIN: DE000A2GS5M9

Table of contents:


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    Balearic Islands most attractive holiday property market in Europe

    The holiday property specialist has an attractive market environment in the core region of the Balearic Islands. In 2018, properties with a total value of around EUR 4.00 billion were sold on this Spanish archipelago. The company has a good market position on the Balearic Islands in its brokerage and holiday rental business segments and thus a good starting position for further growth.

    Significant improvement in turnover and earnings by 2021

    Following the increased focus on the core region of the Balearic Islands and consolidation of the corporate structure, as well as the cost optimisation programme that has been initiated, the H&H Group is now back in growth mode. In parallel, significant improvements in operating results have already been achieved. GBC expects significant effects from the cost reduction programme, particularly in the 2020 financial year.

    On this basis, the analysts expect sales growth in 2019e from EUR 2.22 million to EUR 2.78 million (2020e) and EUR 3.41 million (2021e). In the context of this expected dynamic development and setting economies of scale, the operating result (EBITDA) should also improve further to EUR -1.68 million (2019E), EUR 0.13 million (2020E) and EUR 0.42 million (2021E).

    Business model realigned

    Homas & Holiday has realigned itself in 2019. With the exception of Munich, all branches in Germany were closed and the operational management on Mallorca was bundled. The number of employees was reduced significantly and franchise partners were exchanged. The Group is now fully focused on holiday properties on the Balearic Islands. There, the group is one of the leading marketers with the Porta Mallorquina brand and is the number 2 among the Finca property developers with its booking portal portaholiday.de.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



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