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20 Feb 2020
Norcros - Trading update and coronavirus impact
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Norcros - Trading update and coronavirus impact
Norcros plc (NXR:LON) | 176 1.8 0.6% | Mkt Cap: 158.1m
- Published:
20 Feb 2020 -
Author:
David Buxton -
Pages:
4
The group has announced a trading update highlighting continuing tough UK and weaker SA market conditions. It also signals little short-term impact of the coronavirus so far, but with supply chain disruption likely to affect trading in the spring/summer period. It flags guidance to below previous market expectations. We therefore cut our EPS forecast for FY20 by 6.4% and for FY21 also by 6.4%. We lower our price target from 340p to 318p, based on a target P/E of 9.0x for 2021, which is undemanding and offers significant upside as confidence returns.