Now is the time for investors to engage with Chapel Down, the leader in the growing English sparkling wine market, as we outline a clear path to value creation. With key infrastructure in place, Chapel Down has built a strong moat and is now strategically positioned to monetise its assets without major capex. Brand momentum, particularly among Millennials and Gen Z, supports its market opportunity. In this in-depth relaunch note, we forecast free cash flow turning positive by FY30, scaling significantly by FY35 as new management targets an equivalent 1% of global Champagne volumes (vs 0.4% today). This trajectory supports 3x revenue and 4x EBITDA by FY35, with FCF expected to reach £14m, implying an equity value of £274m (160p per share) at a 5% FCF yield (~17% CAGR). For patient investors, this is compelling. We are raising our near-term target price to 61p (+74% TSR) Buy.
