Baltic group of classified (LSE: BCG) is less known FTSE 250 Growth supplies, which increased by 7% this week. The rally was overweight from the assessment Barclays Last week and a purchase assessment from Bank of America on Monday (July 14).

So what’s going on?

I decided to dig a little deeper.

Diverse business

As the name suggests, Baltic Classifieds runs a package of online classified portals in the Baltic States. His pages exchange everything, from cars and real estate to jobs and general items in Estonia, Lithuania and Latvia.

It is quite a dominant player in these markets, using network effects that make it tough for novel rivals a challenge.

Economic prospects for the region also look quite supportive. Lithuania and Latvia enjoyed a constant raise in wages along with relatively low inflation, helping to maintain consumer demand. Meanwhile, Estonia still sees a hearty international demand for its technological and digital services.

It is true that inflation is to remain stubborn in some parts of the region this year. Despite this, most forecasts indicate a broader economic recovery over the next 12 months, which can maintain glossy expenses – good news for classified classified.

Look at the numbers

The group has a market capitalization of 1.78 billion GBP, and shares trade nearly 370p. Over the past five years, it has been about 125%, which reflects its consistent results.

The company seems solid financially. The divorced profit per share (EPS) increased with a mighty 38.6% year -on -year year, while the annual raise in revenues was 12%. Its net margin is a high 54%, which is impressive even according to technological standards.

But this quality has its price. Baltic Classified falls on the price ratio to profit (P/E) of 30 and the price indicator for the book (p/b) of 6. But this is normal in the case of high growth shares, signaling that investors are willing to bet on future earnings.

And for a reason – management leads that revenues raise to about 117 million pounds by 2028, from about 70 million pounds today. It is forecasted that earnings will reach 17 pence per share in three years – almost 70% raise compared to the current levels.

But if the upcoming earnings do not impress, the price of the action can dive violently. Maybe that’s why analysts take care of a cautious approach. The average 12-month price is only 387 pence, only about 4.4% above the current price.

My verdict

It is tough to argue with hefty weight brokers, such as Barclays and Bank of America, who clearly see something attractive here. Baltic Classified looks like a stable, well -managed company on a decent growth trajectory.

Saying this, he pays an insignificant dividend, so there is no immediate income stream. And because the actions already value the forthright piece of this height, the forecast does not look particularly convincing to me.

Considering a wide range of potentially more lucrative options in a different place on FTSE 250 – many offer both height and income – Baltic Classified would not be my first choice now. Although this can match investors looking for exposure to emerging European markets, I personally look for opportunities with stronger catalysts and better value.