The market has yet to appreciate the extent of the turn around at Volex. We are forecasting PBT growth of 90% and 40% in FY19 and FY20 with the potential for further upgrades from M&A activity. In addition, there is the ability to restore the dividend given an expected cash balance of US$16m by March 2019. Trading on PE ratings of 11x and 9x for FY19 and FY20, we initiate with a buy recommendation and a price target of 130p representing 44% upside. Even then, the resulting FY20 PE rating
13 Dec 2018
Turn around gathering pace
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Turn around gathering pace
Volex plc (VLX:LON) | 306 0 0.0% | Mkt Cap: 556.2m
- Published:
13 Dec 2018 -
Author:
Tony Shiret -
Pages:
17
The market has yet to appreciate the extent of the turn around at Volex. We are forecasting PBT growth of 90% and 40% in FY19 and FY20 with the potential for further upgrades from M&A activity. In addition, there is the ability to restore the dividend given an expected cash balance of US$16m by March 2019. Trading on PE ratings of 11x and 9x for FY19 and FY20, we initiate with a buy recommendation and a price target of 130p representing 44% upside. Even then, the resulting FY20 PE rating