Based upon current operations, we expect gross margins to continue to expand, underpinning a 3yr CAGR for adjusted PBT of 13%. With sustained organic growth, the potential for further M&A activity to support upgrades (in 2017, Midwich has made acquisitions in Spain and Benelux), an ROCE of c30% and a progressive dividend policy implying yields of 3%, we have upgraded our price target from 450p to 535p. We reiterate our BUY recommendation and expect the ten-year run of revenue growth and m
12 Oct 2017
Price target increased to 535p
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Price target increased to 535p
Midwich Group Plc (MIDW:LON) | 436 8.7 0.5% | Mkt Cap: 454.0m
- Published:
12 Oct 2017 -
Author:
Andy Smith -
Pages:
5
Based upon current operations, we expect gross margins to continue to expand, underpinning a 3yr CAGR for adjusted PBT of 13%. With sustained organic growth, the potential for further M&A activity to support upgrades (in 2017, Midwich has made acquisitions in Spain and Benelux), an ROCE of c30% and a progressive dividend policy implying yields of 3%, we have upgraded our price target from 450p to 535p. We reiterate our BUY recommendation and expect the ten-year run of revenue growth and m