An inline YE trading update should come as relief to investors given the shares have been soft over recent months on fears of downgrades. Commentary around the portfolio is positive and there appears to be good momentum going into FY16. With the shares effectively trading at FY16e NAV of 57p, there is deep value at current levels. Overall, we see today’s update as a further step in validating the niche hostel model in a hugely fragmented sector. We stay positive and estimate fair value >100p on DCF analysis.
