The recent Q1 update indicated another good start to the year, with Ashfield continuing to perform well and Sharp in the US still suffering a hangover from a soft H2. The outlook however remains positive and we expect another year of 20%+ EPS growth, assisted by recent acquisitions, a lower effective US tax rate and dollar weakness. We upgrade FY18 EPS by 4% and by 9-10% thereafter, but stay at Hold on short term valuation considerations with a SOTP/DCF-based TP of 813p.
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Model updated for FX and tax
- Published:
07 Feb 2018 -
Author:
Chris Glasper -
Pages:
3
The recent Q1 update indicated another good start to the year, with Ashfield continuing to perform well and Sharp in the US still suffering a hangover from a soft H2. The outlook however remains positive and we expect another year of 20%+ EPS growth, assisted by recent acquisitions, a lower effective US tax rate and dollar weakness. We upgrade FY18 EPS by 4% and by 9-10% thereafter, but stay at Hold on short term valuation considerations with a SOTP/DCF-based TP of 813p.