CTTOF - GreenWood Investors - Correios De Portugal: Best Days Undeniably Lie Ahead

2024-02-11 09:55:00 ET

Summary

• CTT's operating profit is set to hit a company record in about a year’s time, given the capital markets day guidance of €100-120 million in EBIT in 2025.
• As CTT held price and reinvested in quality of service throughout the heat of the moment, it has re-accelerated its market share conquest on the Iberian Peninsula.
• Every day that goes by with it trading for less than half of fair value means the share count will likely be considerably less.

The following segment was excerpted from this fund letter.

Correios De Portugal, S.A / CTT ( OTCPK:CTTOF )

We could say the same for CTT, which is entering its 504th year as an organization. Operating profit is set to hit a company record in about a year's time, given the capital markets day guidance of €100-120 million in EBIT in 2025. Besides this figure being a new company record, what's more compelling is that the majority of it will be made up by profit drivers that didn't exist when we entered the board room in 2019....

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