The AGM update points to a change in the business mix, with weaker microelectronics demand, particularly in China, partly offset by better-than-expected growth in subsea fibre couplers. 2H order books and demand profile signals a stronger 2H. The change results in a less rich margin mix and prompts us to downgrade 2019 EPS by 11.6%. We reduce our price target by a similar amount from 1,675p to 1,475p, pointing to a 2020 P/E of 22x. We anticipate that the shares will react to this disappointing s ....
20 Feb 2019
Gooch & Housego - AGM warns of softer microelectronics but better subsea
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Gooch & Housego - AGM warns of softer microelectronics but better subsea
Gooch & Housego PLC (GHH:LON) | 546 -21.8 (-0.7%) | Mkt Cap: 140.8m
- Published:
20 Feb 2019 -
Author:
David Buxton -
Pages:
4
The AGM update points to a change in the business mix, with weaker microelectronics demand, particularly in China, partly offset by better-than-expected growth in subsea fibre couplers. 2H order books and demand profile signals a stronger 2H. The change results in a less rich margin mix and prompts us to downgrade 2019 EPS by 11.6%. We reduce our price target by a similar amount from 1,675p to 1,475p, pointing to a 2020 P/E of 22x. We anticipate that the shares will react to this disappointing s ....