Raiffeisen analysts expect rise for Transgaz shares

Transgaz Medias (TGN) shares could become an interesting option for investors once again, amid a rise in the net profit distribution rate from 50% to 90%, as well as in the context of heightened risk aversion among investors given the latest political and macroeconomic developments in Romania.

Analysts of Raiffeisen Capital & Investment (RCI) brokerage raised the target price for shares of gas transmission company Transgaz Medias to 246 RON/share, compared with the beginning-of-the-month estimate of 233 RON/share, following the positive data on local gas consumption and the substantial increase in the rate of dividend distribution at state-held companies, Transgaz included.

The new target price estimated by RCI analysts is 9.7% higher than the closing price displayed at the end of last week, 224.1 RON/share, with analysts recommending to "hold" Transgaz shares.