Results for Feb18 smashed expectations and guidance was universally positive, leading to upgrades of >10% as we hoped. While the shares have responded (+23%, 4 weeks), the valuation does not yet adequately capture the high growth and profit dynamics in BOO’s brands. Our detailed analysis of mix, scale economies, and automation savings supports a c10% blended EBITDA margin medium term, albeit not assumed in upgraded forecasts. Sales guidance looks conservative too and, after a “strong start” to F ....
