We upgrade from Sell to Neutral and set a 470p PT (6% upside, 12.4x P/E, 11.5x P/E ex. net cash) as we see current levels offering a more balanced risk-reward profile in light of recent newsflow. Though we continue to believe that there is some downside risk to earnings, we acknowledge the potential for a better-than-expected outlook led by i) a more positive (but still cautious) tone from Kingfisher (owner of B&Q, Headlam’s largest customer), ii) recent economic data showing the UK
09 Apr 2019
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Headlam Group plc (HEAD:LON) | 172 -0.9 (-0.3%) | Mkt Cap: 138.9m
- Published:
09 Apr 2019 -
Author:
Kunal Walia -
Pages:
11
We upgrade from Sell to Neutral and set a 470p PT (6% upside, 12.4x P/E, 11.5x P/E ex. net cash) as we see current levels offering a more balanced risk-reward profile in light of recent newsflow. Though we continue to believe that there is some downside risk to earnings, we acknowledge the potential for a better-than-expected outlook led by i) a more positive (but still cautious) tone from Kingfisher (owner of B&Q, Headlam’s largest customer), ii) recent economic data showing the UK