See what's trending this week...
Companies: AMER, DEBS, TZ5A, FDEV, HUR, WINE, RTHM, SAV, SOLI
Boohoo.Com (BOO)
53% group growth delivered in Q1, trading in line with FY expectations | Zeus Capital, 12 Jun
Paid Access
"boohoo.com has delivered solid Q1 Group revenue growth of 53% to £183.6m, with standout like-for-like growth of 158% delivered by PLT. At a Group level, the UK saw strong growth of 49%, while international sales were up 60%. Group gross margins increased 100bps to 55.2%, reversing the downward trend seen over the last few years, driven by strong full-price sales performance in PLT..."
Boohoo.Com (BOO)
Profit dynamics bolstered by gross margin strength | N+1 Singer, 13 Jun
Paid Access
"Sales grew 53% in Q1 despite slower Boohoo growth, and gross margin smashed consensus expectations. This increases flexibility to reinvest and drive future growth and upgrades. Boohoo’s growth should pick up via overseas expansion, improved customer frequency and easier comps. We have raised FY19 EPS by 4% but growth assumptions in H2 and outer years still look prudent..."
Rhythmone (RTHM)
Results in line/ 20% FCF yield forecast | Whitman Howard, 14 Jun
Paid Access
"R1 has reported FY results for the year to March to 2018, and they are in line with the April 19th trading statement, although cash at $27m was $1m better, as the working capital build in H1 more than unwound. FCF yield of 17% for 2019E and 20% for 2020E. Retain Buy Pt 770p..."
Frontier Developments (FDEV)
Strong outlook across 3 franchises | Liberum, 12 Jun
Paid Access
"The trading update for the FY to May'18 shows revenues and profits ahead of our forecast with strong performances from both Elite Dangerous and Planet Coaster. This highlights the success of Management's multi-year franchise strategy as a games developer and self-publisher..."
Amerisur Resources (AMER)
Now’s the time | Arden Partners, 13 Jun
Paid Access
"Amerisur is an E&P operating onshore Columbia. The company has high margin production from its Platanillo field and Mariposa-1 well supported by ownership of the OBA pipeline, which connects Platanillo into the Ecuadorian pipeline system. A new up-to-14 well drilling programme is about to begin, providing newsflow and a route to 20mbbl/d. Buy, 30p target (from 25p)..."
Amerisur Resources (AMER)
Reducing our production forecast | GMP FirstEnergy, 11 Jun
Paid Access
"Amersiur reported May 2018 production volumes of 4,807 bbl/d. For the first five months of 2018 production has averaged 6,133 bbl/d, which is significantly below our prior 1H18e production forecast of 6,800 bbl/d. We have reduced our 2018e and 2019e production forecast, noting the company’s challenges of achieving sustainable production of 7,000 bbl/d. We have reduced our target price to £0.15 per share and rating to REDUCE..."
Eckoh (ECK)
Business looking strong for FY’19… despite IFRS 15 | N+1 Singer, 13 Jun
Paid Access
"Eckoh’s full year results to March’19 are in-line, as flagged at the May trading update. US Secure Payments continues to lead the way, driving 32% underlying growth in the US division. The UK is returning to form after a weak H1’18, with strong momentum going into the current year. We are making small underlying upgrades to our FY’19 forecasts, however the picture is complicated by the non-cash impact of adopting IFRS 15..."
Solid State (SOLI)
Significant order win | finnCap, 11 Jun
Paid Access
"The company has announced an important order worth £4.3m for the supply of power units for autonomous robots. This is significant as it is with a new customer in a potentially high growth area, plus the size is significant, compared with annual revenues of £47m. No change to existing forecasts, but the contract provides a much greater degree of confidence in expectations for FY 2019 and should provide some upside to the shares, which had previously come under pressure after the last trading update..."
Hurricane Energy (HUR)
Enhanced EPS returns at current strip | Edison, 11 Jun
Free Access
"The development of Hurricane’s Lancaster early production system (EPS) remains on track for H119 first oil. We estimate a 1 January 2018 point-forward IRR of 63% for the EPS phase based on current commodity price forecasts. We use the EIA’s short-term oil forecast with Brent at $66/bbl for 2019 and long-term $70/bbl (from 2022). We believe the market is fully valuing a 10-year Lancaster EPS phase (34.7p/share net of debt), a project that has the potential to significantly de-risk our RENAV of 81.0p/share (increased from 78.4p/share)..."
Majestic Wine (WINE)
More than delivering on promises | Liberum, 14 Jun
Paid Access
"FY18 results confirm the progress made and have surprised significantly ahead on FCF, EPS and dividends. The group is increasingly well balanced with growing exposure to both online and international markets and we see the acceleration in customer growth spend as sensible capital allocation given: (1) an IRR of 89%, and (2) low leverage with Net debt 0.35x EBITDA..."
Savannah Resources (SAV)
Mina do Barroso scoping study released | finnCap, 14 Jun
Paid Access
"Savannah Resources offers exposure to a diversified portfolio of mining assets including lithium in Portugal, copper in Oman and heavy mineral sands in Mozambique. The Mina do Barroso lithium project in Portugal is the most recent addition to the portfolio, but has been rapidly advanced and is now the company’s principal asset. A scoping study for Mina do Barroso has now been completed; we have used this as the basis for updating our valuation and target price..."
