A number of set-backs since the launch of the current strategy, and cumulative downgrades of c25%, have dashed optimism and damaged sentiment leaving the P/E on 11.8x cal’16. The high was 20x when hopes of faster growth rates boosted sentiment. However, strategic changes are visibly gaining traction and all KPIs are now trending in the right direction including, critically, increasing the EBIT margin. With sizeable savings also appearing on the horizon, the growth outlook is brightening. Sentiment won’t recover overnight but the stock’s rating could well rebuild over time.
