The group has released a positive trading update, signalling a strong H2 and performance ahead of expectations. The new guidance points to a 6.7% upgrade to revenues and a 10.5% upgrade to EBITDA. Cash generation has been notably strong, at about $26m, which will drive an increase in supplemental dividends with a dividend yield of 7.1%. We raise our TP from 255p to 285p, based on a target P/E of 14x, giving decent upside to the current 11.6x.
19 Nov 2020
Somero Enterprises - Positive update – trading ahead of expectations
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Somero Enterprises - Positive update – trading ahead of expectations
Somero Enterprises, Inc. (SOM:LON) | 340 17 1.5% | Mkt Cap: 188.4m
- Published:
19 Nov 2020 -
Author:
David Buxton -
Pages:
4
The group has released a positive trading update, signalling a strong H2 and performance ahead of expectations. The new guidance points to a 6.7% upgrade to revenues and a 10.5% upgrade to EBITDA. Cash generation has been notably strong, at about $26m, which will drive an increase in supplemental dividends with a dividend yield of 7.1%. We raise our TP from 255p to 285p, based on a target P/E of 14x, giving decent upside to the current 11.6x.