When we moved to Sell in May, we highlighted a negative risk/reward balance, citing a valuation anomaly vs. an increasingly uncertain backdrop. Today’s update confirms this to have been the right call with forecasts reduced 7%. Using a target multiple of 8.0x EV/EBITDA (vs 8.5x before) we have reduced our target price to 225p, noting that increased trading volatility and forecasting unpredictability mean further downgrades cannot be ruled out. We maintain a Sell. That said SFE is better placed t ....
18 Jul 2017
N+1 Singer - Safestyle UK - Weak end markets trigger 7% downgrades
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N+1 Singer - Safestyle UK - Weak end markets trigger 7% downgrades
- Published:
18 Jul 2017 -
Author:
Matthew McEachran -
Pages:
4
When we moved to Sell in May, we highlighted a negative risk/reward balance, citing a valuation anomaly vs. an increasingly uncertain backdrop. Today’s update confirms this to have been the right call with forecasts reduced 7%. Using a target multiple of 8.0x EV/EBITDA (vs 8.5x before) we have reduced our target price to 225p, noting that increased trading volatility and forecasting unpredictability mean further downgrades cannot be ruled out. We maintain a Sell. That said SFE is better placed t ....