July 10 (Bloomberg) -- Turkiye Sise ve Cam Fabrikalari AS rose to a three-week high on bets this year’s depreciation in the lira is helping boost the value of the Turkish glassmaker’s foreign-currency holdings.
The shares of Sisecam, as the company is known, rose 1.9 percent to 2.72 liras, the highest level since June 19, at the close in Istanbul, after earlier jumping 4.9 percent. The stock has climbed 7.1 percent in the past two days and was the seventh-biggest gainer today on the Borsa Istanbul National 100 index, which dropped 1.3 percent to 71,074.11.
Sisecam, which makes and exports glass, had a net foreign currency surplus of 370 million liras ($190 million) at the end of March, according to company documents. The lira has depreciated 7.5 percent since then, the fourth-worst performer among emerging-market currencies tracked by Bloomberg.
The stock is rising due to the company’s “strong foreign-currency position,” Gulizar Turk, head of research at Anadolu Yatirim in Istanbul, said by phone. She has a year-end price target of 3.4 liras on Sisecam, implying a 25 percent upside. “Investors are seeking defensive stocks as they shift from financials to industrials.”
The shares trade at a forward price-to-earnings multiple of 8.8, compared with 11.1 times for the Borsa Istanbul Stock Exchange National Industrials Index, which doesn’t include Sisecam. The glassmaker’s profit will probably jump 43 percent this year to 422 million liras, according to the average estimate of 15 analysts compiled by Bloomberg.
About 11.4 million Sisecam shares traded today, or 89 percent of the stock’s three-month daily average, according to data compiled by Bloomberg. The shares are down 3.4 percent this year, outperforming the benchmark index’s 9.1 percent decline.
Seven analysts recommend buying the shares, while eight say hold and four advise on selling them, data compiled by Bloomberg show.
To contact the reporter on this story: Taylan Bilgic in Istanbul at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org