Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MEGGITT PLC. We currently have 23 research reports from 4 professional analysts.
|22Mar17 17:40||RNS||Director/PDMR Shareholding|
|13Mar17 17:44||RNS||Director/PDMR Shareholding|
|13Mar17 12:30||RNS||Director/PDMR Shareholding|
|06Mar17 16:49||RNS||Holding(s) in Company|
|01Mar17 09:20||RNS||Total Voting Rights|
|28Feb17 15:34||RNS||Director/PDMR Shareholding|
|28Feb17 07:00||RNS||2016 Full-year results|
Frequency of research reports
Research reports on
Panmure Morning Note 01-03-2017
01 Mar 17
Judging by yesterday’s share price reaction the market is again backing a management which without the benefit of high energy prices has delivered little apart from a deteriorating balance sheet. It is promising 2-2.5% group margin and in excess of £200m cash from inventory improvement by 2021 and more details of how many millions will be wasted to achieve this will be provided at a CMD in May. What the management failed to say loudly was that their Civil Aerospace businesses (like Senior) have so little bargaining power that the only competitive advantage they have is how much of their shareholders funds they are willing to gamble on Airbus and Boeing’s hubris. Forget higher 2021 margin targets, we doubt anyone in the executive team will be around then to explain why they failed. The immediate concern for investors is that the total cost of capex and freebies is set to explode. As net debt rises, even a small decline in expected aircraft deliveries will create a stampede to divest. SELL.
01 Mar 17
Meggitt has not only released encouraging results, even though negatively impacted by a one-off loss, but has also raised its synergy expectations, while having passed the peak on R&D spending. Thanks to this, it expects a strong improvement in both the operating margin and cash flow generation.
Panmure Morning Note 19-12-2016
19 Dec 16
Since the October 2015 profit warning, the EPS consensus has been stuck a 34p despite the benefit of EPS-enhancing acquisitions and FX benefit which confirms our long-held view that underlying fundamentals continue to deteriorate. Yet the share price has increased by 29% thanks in part to Elliot buying over 5% stake in August 2016. Going forward, we estimate that EPS will resume its downward trajectory as there is little sign of improvement in the business jet markets and rising interest rates will make it harder for the management to use cheap money to buy earnings.
Civil: No Reflation here, only a Race to the Bottom
05 Dec 16
The strengthening of the US dollar since the election of Trump is adding to the headwinds in the airline industry: over-capacity and falling yields. The airline industry, which is expected to generate $8bn of free cashflow in 2016 on $600bn of capital employed, needs to spend $120bn annually to maintain current delivery rates. Deferrals and down-gauging is now spreading to narrow-bodies as more and more airlines review their capex plans. We expect acceleration of seat densification as airlines look to sweat their existing fleets. We now expect deliveries to fall by 5% over 2015-18 as opposed to our previous forecast of flat growth. Aftermarket may also suffer as seat densification helps cut number of flights. This leads to reduction in our EPS forecasts for key Civil Aerospace names: Rolls-Royce, Meggitt, GKN and Senior.
Flight path to growth
18 Nov 16
Meggitt has had a turbulent few years with numerous profit warnings and no organic growth since FY13. FY16 looks to be the start of the turnaround, with the recent Q3 trading statement indicating the company is on course to meet guidance for low single-digit organic revenue expansion this year. However, the company has some way to go to restore investor confidence. It was also announced that Rolls-Royce veteran Tony Wood is joining as COO, a boost to the Meggitt management team.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.
Scott deal puts spotlight back on corporate strategy and valuation
17 Mar 17
The acquisition of Scott Safety by 3M announced yesterday is not a huge surprise but it puts the spotlight back on (1) Avon’s corporate strategy as two strong competitors merge and (2) Avon’s break-up valuation given the rich multiple (12.9x EBITDA) being paid by 3M. Avon and other competitors, particularly MSA Safety, cannot ignore the fact that Scott, which is the leader in SCBA (self-contained breathing apparatus) market and 3M, which derives the bulk of sales from industrial hard hats and masks, would together have the most comprehensive portfolio of products in the PPE (Personal Protective Equipment) market. The good news for investors is that if we were to apply similar EBITDA multiple, then Avon’s Protection & Defence business alone would account for the entire market cap. In effect, at the current share price, investors are getting the Dairy business for free. Our sum-of-the parts model now values the shares at 1,279p, up 7% compared with 1,200p previously.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017