After two profit warnings this year, a management overhaul, and the share price falling below tangible book value, we believe that Speedy’s shares are undervalued. Speedy has a strong asset backing and a manageable debt position, and there are no imminent signs of a downturn in its core end markets. We set our target price at 50p based on an FY’17 price/book value of 1.1x. This is a 27% discount to the Group’s historic multiple and represents c.72% upside to the current price. A number of measur ....
06 Nov 2015
Remedial actions underway; discount unwarranted
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Remedial actions underway; discount unwarranted
Speedy Hire Plc (SDY:LON) | 23.6 0 (-0.6%) | Mkt Cap: 108.8m
- Published:
06 Nov 2015 -
Author:
Greg Poulton -
Pages:
21
After two profit warnings this year, a management overhaul, and the share price falling below tangible book value, we believe that Speedy’s shares are undervalued. Speedy has a strong asset backing and a manageable debt position, and there are no imminent signs of a downturn in its core end markets. We set our target price at 50p based on an FY’17 price/book value of 1.1x. This is a 27% discount to the Group’s historic multiple and represents c.72% upside to the current price. A number of measur ....