Northbridge has bought the oil tool assets of an insolvent rival at a “substantial” discount in what we see as an opportunistic move to position the electrical and oil and gas services group for recovery. For the first time since the slump in oil tools demand, we have raised our revenue and EBITDA forecasts for FY 2019 and our PBT and EPS estimates for 2020. For FY 2019 EV/EBITDA is 7.0x, falling to 4.9x for FY 2020. Our new DCF model derives a target price of 172p and we have rai
08 Nov 2018
Opportunity knocks
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Opportunity knocks
- Published:
08 Nov 2018 -
Author:
Alastair Stewart -
Pages:
10
Northbridge has bought the oil tool assets of an insolvent rival at a “substantial” discount in what we see as an opportunistic move to position the electrical and oil and gas services group for recovery. For the first time since the slump in oil tools demand, we have raised our revenue and EBITDA forecasts for FY 2019 and our PBT and EPS estimates for 2020. For FY 2019 EV/EBITDA is 7.0x, falling to 4.9x for FY 2020. Our new DCF model derives a target price of 172p and we have rai