Electrical and oil services equipment specialist Northbridge has confirmed that recent trading has continued to improve and is in line with its forecasts. We maintain our estimates and note the continuation of the steady improvement in the tone of announcements. After recent share price weakness, we believe the valuation looks compelling at a FY 2019E EV/EBITDA of 5.6x, falling to 3.9x in FY 2020E. We maintain our 172p target price – 53% upside – and our Buy recommendation.
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Recovery gathers “further resilience”
- Published:
05 Feb 2019 -
Author:
Alastair Stewart -
Pages:
2
Electrical and oil services equipment specialist Northbridge has confirmed that recent trading has continued to improve and is in line with its forecasts. We maintain our estimates and note the continuation of the steady improvement in the tone of announcements. After recent share price weakness, we believe the valuation looks compelling at a FY 2019E EV/EBITDA of 5.6x, falling to 3.9x in FY 2020E. We maintain our 172p target price – 53% upside – and our Buy recommendation.