Gafrik Research today releases its Initiating Quarter Report on GEVORKYAN, a.s., a Central European industrial manufacturer specialising in powder metallurgy components. This publication also represents the first initiating coverage issued under the Gafrik Research Analytical Methodology, introduced in January 2026.
We initiate coverage with a BUY rating and a target price of €12.34, implying +26% upside from the current market price.
GEVORKYAN, a.s. is in the final phase of a €60–80m investment cycle (2023–2026), focused on automation, capacity expansion and higher value-added applications. In 9M 2025, the company delivered revenues of €63.5m (+8.7% YoY) and EBITDA of €23.0m (+17.2% YoY), achieving an EBITDA margin of 36.2%, the highest in its peer group. Long-term contracts provide over 90% revenue visibility, supporting earnings stability through the investment phase.
Despite these fundamentals, the company trades at 8.3x EV/EBITDA, a 61% discount to global peers. Our valuation applies a conservative target multiple of 9.7x EV/EBITDA, reflecting small-cap size, limited free float, CEE exposure and elevated leverage, partially offset by exceptional profitability and productivity metrics. Based on FY2025E EBITDA of €30.7m, we derive an equity value of €205m and a target price of €12.34 per share.
Since the publication of the 9M 2025 results, the company has released several updates related to its defence activities. These disclosures support the strategic direction of the defence pivot and improve qualitative visibility into potential future revenues.
Key near-term catalysts include delivery of FY2025 EBITDA guidance (Q4 results expected in March 2026) and disclosure of a tangible defence contract. Key risks include tight liquidity during the peak investment phase, dependency on Q4 execution, and refinancing requirements in the 2028–2029 period.
This report is published as issuer-sponsored research, prepared with full editorial independence in accordance with the Gafrik Research Analytical Methodology. All conclusions are based solely on independent analysis.
The full Initiating Quarter Report is available via Refinitiv and below.
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Important Notice: This post is a summary of the full research report. It is provided for informational purposes only and does not constitute investment advice. Gafrik Research was compensated by the issuer for the preparation of this report, but maintains full editorial independence. For the full list of disclosures, rating definitions, and analyst certifications, please refer to the complete PDF report available for download above.
