We initiate on Hydrodec with a buy rating and 100p target price. Our view is predicated on the likely sharp increase in EBITDA and cash flow as working capital inflows from the recent capital raise drive improving capacity utilisation and operating leverage. In our view, the shares currently price very limited operational improvements, if any, and although we acknowledge that refining is a technically challenging process, we believe the Group’s expertise is sufficient to manage the increasing ou ....
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Hydrodec - Fuelling Growth - Initiation
- Published:
12 Feb 2019 -
Author:
Andrew Simms -
Pages:
41
We initiate on Hydrodec with a buy rating and 100p target price. Our view is predicated on the likely sharp increase in EBITDA and cash flow as working capital inflows from the recent capital raise drive improving capacity utilisation and operating leverage. In our view, the shares currently price very limited operational improvements, if any, and although we acknowledge that refining is a technically challenging process, we believe the Group’s expertise is sufficient to manage the increasing ou ....