The year end update confirms a strong H216 trading period and in line with our forecast of 30% adjusted pro forma earnings growth in FY16. With a considerably strengthened balance sheet driving investment in the loan book and demand for used car loans likely to remain strong, the group is well placed to deliver superior earnings growth for the foreseeable future. The improved quality of earnings fully warrants an upper-teens rating and the shares are, we believe, clearly mis-priced on a FY17
12 Feb 2016
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S&U plc (SUS:LON) | 1,835 0 0.0% | Mkt Cap: 223.0m
- Published:
12 Feb 2016 -
Author:
Ben Thefaut -
Pages:
4
The year end update confirms a strong H216 trading period and in line with our forecast of 30% adjusted pro forma earnings growth in FY16. With a considerably strengthened balance sheet driving investment in the loan book and demand for used car loans likely to remain strong, the group is well placed to deliver superior earnings growth for the foreseeable future. The improved quality of earnings fully warrants an upper-teens rating and the shares are, we believe, clearly mis-priced on a FY17