Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MAJESTIC WINE PLC. We currently have 12 research reports from 3 professional analysts.
|01Dec16 05:29||RNS||Holding(s) in Company|
|30Nov16 07:00||RNS||Total Voting Rights|
|23Nov16 07:50||RNS||Director/PDMR Shareholding|
|21Nov16 12:50||RNS||Director/PDMR Shareholding|
|17Nov16 02:14||RNS||Director/PDMR Shareholding|
|17Nov16 07:00||RNS||Half Year Results|
|31Oct16 07:00||RNS||1250 Wines Now Available for Next Day Delivery|
Frequency of research reports
Research reports on
MAJESTIC WINE PLC
MAJESTIC WINE PLC
Panmure Morning Note 17-11-2016
17 Nov 16
H1FY17 results are in line with the significantly downgraded (-c.24%) consensus estimates following the September 21 profit warning. Adj PBT of £0.1m reflects in large part strategic investment costs highlighted at the H1FY16 results. One year into its 3 year transformation plan, management strikes a confident tone around its plan being on track to “deliver sustainable growth”, highlighting that WINE is at a profitability “tipping point” post the heavy P+L investment phase. The reinstatement of the interim divi at 1.5p, cash conversion of adj profits (albeit materially reduced y/y), and good progress in the five KPIs (most notably customer retention) are supportive of such confidence. We still think, however, that the restoration of the legacy Majestic retail business (still c.90% of the enlarged group’s trading EBIT) to sustained growth, vitality and competitiveness will be highly protracted. Meanwhile, we think that Naked Wines has yet to prove its ability to grow both sales and profits on a sustainable basis such is the financial model in online wine retailing based on customer lifetime values and the consequent criticality of customer acquisition and retention. We use this note to update our stale forecasts to reflect both the effects of the September 21 profit warning and today’s in line H1FY17 results. Maintain HOLD.
Panmure Research - Majestic Wine Flash 07-01-16
07 Jan 16
In the wake of the recent H1FY16 results, the strategic update and the subsequent significant rebasing of consensus forecasts, in addition to our follow-up conversations with management and today's encouraging Xmas (10 weeks) trading update, we publish our new forecasts (struck in line with consensus estimates which we think will remain unchanged today) and move to Hold from Under Review and reinstate our previous Target Price of 320p. As such, we take a more neutral stance on the stock than our previous negative stance. This reflects the balance of (1) our continued reservations about a sustainable restoration in the fortunes of the legacy Majestic business resulting from the 3 year turnaround plan, and (2) our recognition of the potential source of forecast outperformance on a 3 to 5 year basis is Naked Wines. In short, we can see the payoff arising from better capital allocation in the future as the enlarged group moves more towards Naked Wines' capital-light/high ROI growth model, which should be positive for valuation metrics like EV/Return on invested capital.
Panmure Research - Majestic Wine Flash 16-11-15
16 Nov 15
We place our Sell recommendation Under Review as the shares (viz. Nov 13's closing price of 310p) have now gone through our Target Price of 320p. The shares are down 26% since we reiterated our Sell in our Sept 14 note and 34% since mid-August when we highlighted that the shares had risen, bafflingly, to such highs post the Naked Wines acquisition in April whilst the UK retail sector's hitherto strong relative 12 month stock outperformance started to fade over the summer. We think it necessary to await our 1-on-1 meeting with the CFO later today to better understand the financial implications of today's results/strategic review, and our 1-on-1 meeting with the CEO/CFO on Friday Nov 20 to better digest the strategic review before revisiting our investment stance.
Panmure Research - Conviction List Q4 2015 01-10-15
01 Oct 15
9.2% outperformance in Q3 sounds good, but set against a market that fell 9.1% this is hardly a great result. The disparity of performance was enormous with a couple of true mistakes in the Mining and Oil & Gas sector taking a heavy toll. For Q4 we have cut some losses and introduced Greene King, Microfocus and Wentworth on the Long calls with two new high conviction Short calls in Rolls Royce and Majestic Wine. Total outperformance since 2010 is 114% with 2 negative quarters out of 28. It seems there may be some alpha in our analyst's stock knowledge.
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*.
Dominant, defensive and highly cash generative
24 Nov 16
Pets at Home have reported a strong set of interims for the 28 week period to 13th October which highlight the investment strengths. This is a high quality retail business that enjoys a dominant position in an attractive and highly defensive subsector. The company has a pipeline of profitable store openings, reports consistently positive like-for-like growth and is highly cash generative. We therefore reiterate our Buy recommendation and price target of 271p.
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