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18 Nov 2019
Norcros - Initiation of coverage – significantly undervalued growth
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Norcros - Initiation of coverage – significantly undervalued growth
Norcros plc (NXR:LON) | 180 14.4 4.5% | Mkt Cap: 161.3m
- Published:
18 Nov 2019 -
Author:
David Buxton -
Pages:
40
Norcros continues to grow despite challenging market conditions, with management achieving growth through a successful record of acquisitions as well as market share growth from new product developments and other gains. The bathroom hardware market remains fragmented, with huge scope for market consolidation, often gaining from competitor distress. The shares trade on an unwarranted and significant discount to the peer group, despite its lower retail exposure, better track record and stronger balance sheet. Fundamentally, we see strong scope for a rerating. Buy.