Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on INCHCAPE PLC. We currently have 13 research reports from 2 professional analysts.
|06Dec16 10:27||RNS||Holding(s) in Company|
|05Dec16 11:49||RNS||Director/PDMR Shareholding|
|02Dec16 01:56||RNS||Total Voting Rights|
|07Nov16 04:25||RNS||Holding(s) in Company|
|01Nov16 04:28||RNS||Director/PDMR Shareholding|
|01Nov16 04:24||RNS||Director/PDMR Shareholding|
|01Nov16 04:18||RNS||Director/PDMR Shareholding|
Frequency of research reports
Research reports on
Looking into 2017/18
16 Nov 16
Sector sentiment is at a low point with clear uncertainty around 2017/18 earnings. We are attempting to cut through this, and believe the share price falls more than price in the earnings risk. Following a robust September, we would expect a strong 2016 performance, which has been confirmed by all dealers, but do expect conditions to get more difficult from here. We continue to favour stocks with flexible balance sheets at this stage of the cycle.
28 Jul 16
H1 results from Inchcape are 3% ahead of our expectations and consensus at the adjusted PBT level reflecting robust YOY growth at the revenue and operating profit level. Cash generation remains strong and a further £100m share buyback programme has been launched. We would not anticipate significant movement in consensus estimates post results, albeit expectations in North Asia are likely to fall offset by better than expected growth in Australasia. Greater uncertainty is expected in its UK business in H2, but it’s too early to call the longer term impact post Brexit. As ever these results are mixed, but should be largely well received.
07 Jul 16
The sector has come under severe pressure following the Brexit vote with investors clearly pricing in distressed economic scenarios with share prices falling between 15% and 51% across the sector. We believe the dealer groups are better businesses this time around, albeit the uncertainty in the economy is likely to adversely impact both new and used car sales. We would favour those stocks that have been oversold with flexible balance sheets. We see significant long-term upside in Cambria and Vertu as fitting these criteria. We are also becoming more positive on Inchcape as its overseas exposure against a weak Sterling backdrop should give it some protection, backed by a strong balance sheet. We believe that Lookers and Pendragon have also been oversold, but remain nervous on Marshall Motor Holdings following its recent decision to gear up by purchasing Ridgeway.
Solid trading update
26 May 16
Inchcape has delivered a robust trading update, essentially confirming it continues to trade in line with expectations. We are not changing our forecasts at present. Within the mix, it looks like North Asia has weakened further albeit the growth in South Asia more than offsets this. Elsewhere, Inchcape continues to trade well in Australasia and the Emerging Markets. The UK continues to trade well and Europe remains stable. We maintain our view that the valuation remains full relative to the UK dealer groups and we therefore believe there are better ways to play the sector.
Taking the temperature
08 Apr 16
We believe that the UK motor sector has had a strong Q1 2016, which should position most companies well for H1. Consumers are still responding well to attractive financing deals, and we anticipate a strong H1 performance from dealers as a result. Valuations amongst the dealer groups remain undemanding in our view, and we see scope for further consolidation during the coming year.
05 Dec 16
These interims show LPEs by is ahead of its plan to recruit 360 LPEs by April 2017 and is making impressive progress in Australia. The statement (and we expect the results presentation) provide considerable evidence of Purplebricks’ progress in building its brand, increasing its LPE footprint, developing its technology, creating engaging marketing and selling properties. We leave our forecasts unchanged. Investor confidence in Purplebricks’ ability to deliver sustainable profitable growth should result in share price appreciation towards a valuation based on its results for the year ended April 2019.
Successfully engaging players
06 Dec 16
Stride has a clear focus on online bingo and soft gaming and is growing rapidly, with FY16 l-f-l revenue up 22%. The acquisitions of Tarco and 8Ball at the end of FY16 doubled its share of the UK bingo-led market from 5% to 10% and should deliver material synergies from FY17. Our unchanged FY17 estimates are for 11% EPS growth and strong cash generation. We expect organic growth to be augmented by further accretive acquisitions in due course. Stride’s FY17 P/E is 10.3x and the calendarised EV/EBITDA is only 7.1x, implying considerable share price upside potential.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m