Norcros continues to use its balance sheet to finance EPS enhancing acquisitions and generate returns in excess of its cost of capital. Following the acquisition of Merlyn for £60m, we have upgraded our FY18 and FY19 PBT estimates by 9% and 28% to £26.4m and £32.8m respectively and our price target from 260p to 290p. With Merlyn’s premium product range, we forecast FY19 group EBIT margins to expand from 8.9% to 10.3% and that despite 18.3m new shares in issue, the acqu
28 Nov 2017
EPS enhancing acquisition raises PT to 290p
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EPS enhancing acquisition raises PT to 290p
Norcros plc (NXR:LON) | 180 14.4 4.5% | Mkt Cap: 161.3m
- Published:
28 Nov 2017 -
Author:
Andy Smith -
Pages:
5
Norcros continues to use its balance sheet to finance EPS enhancing acquisitions and generate returns in excess of its cost of capital. Following the acquisition of Merlyn for £60m, we have upgraded our FY18 and FY19 PBT estimates by 9% and 28% to £26.4m and £32.8m respectively and our price target from 260p to 290p. With Merlyn’s premium product range, we forecast FY19 group EBIT margins to expand from 8.9% to 10.3% and that despite 18.3m new shares in issue, the acqu