The AGM update from Xpediator provides further strong evidence of investment in management better able to support the Group’s rapid growth in revenues. The Group’s enhanced infrastructure should enable further acquisitions sourced from a strong pipeline of bolt-on opportunities. They can again be rapidly integrated and enhanced post-deal. Trading YTD has performed in-line with expectations, benefitting from strong progress within Freight Forwarding. The free cash flow (FCF) yield has risen to a hefty 10.9%. In our opinion, this factors in an excessive Brexit-related discount. In fact, our valuation models suggest a fair value of 74p/share, slightly reduced from 78p because of the impact of US-China trade talks on the global logistics operators based in America. Our fair value is still materially above current share levels.
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Investing for growth
- Published:
06 Jun 2019 -
Author:
David O’Brien -
Pages:
2
The AGM update from Xpediator provides further strong evidence of investment in management better able to support the Group’s rapid growth in revenues. The Group’s enhanced infrastructure should enable further acquisitions sourced from a strong pipeline of bolt-on opportunities. They can again be rapidly integrated and enhanced post-deal. Trading YTD has performed in-line with expectations, benefitting from strong progress within Freight Forwarding. The free cash flow (FCF) yield has risen to a hefty 10.9%. In our opinion, this factors in an excessive Brexit-related discount. In fact, our valuation models suggest a fair value of 74p/share, slightly reduced from 78p because of the impact of US-China trade talks on the global logistics operators based in America. Our fair value is still materially above current share levels.