TUPRAS Tacirler Investment Company Report

Strong profitability in high season…

We revise our forecasts and target price for Tupras <TUPRS TI> in the light of better than expected 2Q23 financial results, recovery in product margins in the third quarter, and improvement in profitability margins through cost-effective method. We raise 12M TP to TL226.00 from TL94.10 per share and maintain our BUY recommendation. Middle distillate product margins have been above the historical average since the year-to-date, the recovery in gasoline product margins due to the high season, the continued high demand for refinery products in the domestic market, and strong operational cash flow remain the main catalysts for a brighter outlook. TUPRS trades at 7.0x P/E and 4.0x EV/EBITDA in our 2023E forecasts, and 5.0x P/E and 3.6x EV/EBITDA in our 2024E forecasts.