Zambeef offers an interesting investment opportunity on three levels: 1) it is a direct play on the rapid growth in GDP and GDP per capita in subSaharan Africa, specifically Zambia; 2) we expect the business to have a strong recovery in earnings after a turbulent couple of years; and 3) the valuation offers substantial upside given the shares currently trade at 0.2x book value, 8x FY 2016E earnings and have the potential to deliver a double-digit free cash yield. Our 24p target offers c100% u
07 Apr 2015
Plenty of meat on the valuation bone
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Plenty of meat on the valuation bone
Zambeef Products PLC (ZAM:LON) | 5.8 0 0.0% | Mkt Cap: 23.0m
- Published:
07 Apr 2015 -
Author:
Cavendish Research - Pages:
Zambeef offers an interesting investment opportunity on three levels: 1) it is a direct play on the rapid growth in GDP and GDP per capita in subSaharan Africa, specifically Zambia; 2) we expect the business to have a strong recovery in earnings after a turbulent couple of years; and 3) the valuation offers substantial upside given the shares currently trade at 0.2x book value, 8x FY 2016E earnings and have the potential to deliver a double-digit free cash yield. Our 24p target offers c100% u