Revolution Bars share price is c.20% below its March-15 IPO price. We struggle to identify a compelling reason for the weakness. Driven by a clearly defined expansion trategy of a high ROCE premium bar concept with limited direct competition, we see he company delivering above average growth over the next 3 years (14% CAGR). The shares offer compelling value on a cal’16 P/E of 11x, 5x EV/EBITDA and a FCF yield of 10%. We estimate fair value on a 12m view at 245p, based on 7x FY17 EV/EBITDA (implied P/E 14.5x).
