25 Feb 2016
Strong growth in H1, upgrading forecasts
Redde has continued to deliver ahead of our expectations. Revenue and profitability in H1 equates to c.50% of our prior FY16e forecasts despite an additional contribution expected in H2 from recent acquisition FMG. Volume growth momentum has continued into 2016. We upgrade our FY16e PBT forecast by 21% but believe that this remains conservatively struck. From a valuation perspective, we focus on FY17e and note that our intrinsic valuation points to a price in excess of 200p.
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Strong growth in H1, upgrading forecasts
Redde Northgate PLC (21W:FRA) | 0 0 0.0% | Mkt Cap: 498.3m
- Published:
25 Feb 2016 -
Author:
Andrew Watson -
Pages:
9
Redde has continued to deliver ahead of our expectations. Revenue and profitability in H1 equates to c.50% of our prior FY16e forecasts despite an additional contribution expected in H2 from recent acquisition FMG. Volume growth momentum has continued into 2016. We upgrade our FY16e PBT forecast by 21% but believe that this remains conservatively struck. From a valuation perspective, we focus on FY17e and note that our intrinsic valuation points to a price in excess of 200p.