Devro enters 2016 with sounder fundamentals. It now has a well-invested / relevant asset base to capture emerging market growth and other opportunities. With a strengthening US$ an added tailwind, we have high conviction of growth and returns accelerating in FY16/17 to drive a narrowing of the valuation discount to its closest peer. Our base case 12m TP of 350p implies 30% TSR. Buy on growth and FCF criteria.
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Nicely sizzling towards a 2016 inflection point
- Published:
04 Jan 2016 -
Author:
Sahill Shan -
Pages:
4
Devro enters 2016 with sounder fundamentals. It now has a well-invested / relevant asset base to capture emerging market growth and other opportunities. With a strengthening US$ an added tailwind, we have high conviction of growth and returns accelerating in FY16/17 to drive a narrowing of the valuation discount to its closest peer. Our base case 12m TP of 350p implies 30% TSR. Buy on growth and FCF criteria.