Hints and tips:
...NWG suffered nine years of losses through 2008-2016; this time we forecast a return to (moderate) profitability as soon as 2021e tNAV per share fell to 264p in Q2 2020; the shares, on 0.4x tNAV, are again...
...We revise our Target Price to 62p and expect an adjusted EBIT of £140mn in FY’21, implying 19.7x EV/EBIT vs. long-term average of 9.1x....
...Management’s call for a rebound in trends through the remainder of the year is supported by: (1) Significant ARPU improvements seen through June and July, and (2) The guided to £15m EBITDA impact from COVID...
...UK banks valuations are low (0.46x 2022e TBV and 6.4x P/E) but only trade at a modest discount to European banks (0.52x and 7.1x)....
...Schneider Electric has committed to retaining its 60% control of Aveva through its participation in the rights issue....
...We forecast 3.4x gross leverage in FY20 vs. TUI target range of 2.25x-3.0x....
...AG Barr trades on calendar 2020 PE of 20.1x and free cash flow yield of 3.9%. This compares to European Soft Drink peers on 20.1x and 5.0% respectively (using a harmonic mean approach)....
...The new financing terms have set revised covenants of 5.1x. We estimate 3.7x ND/EBITDA in the COVID-disrupted year of FY20, falling to 2.1x next year....
...The shares trade on 7.4x FY21 EV/EBITDA and c.10x FY21 PE, both of which are undemanding....
...Volumes through the parcel pick up/drop off points, however, were poor in the run-up to Christmas....
...Its RCF has a <4x ND/E pre IFRS 16 ND/E covenant. We have Pearson ND/E on this basis at 0.1x at end 2020....
...understandably consider an equity issue. 1) A 50% revenue decline in 2H20 whereas consensus assumes this in Q3 and some improvement in Q4; 2) “Compass-defined ND/EBITDA of 5x” which is well above our 3.1x...
...Our TP implies a FY21e P/E of 23.4x, and EV/EBITDA of 17.7x. The valuation premium to other tobacco stocks reflects volume growth and lower ESG risks....
...At 180p, the shares would be trading on 8.4x recovered earnings and would be 37% off their 52-week high reached on 17 June 2019....
...We value IAG at a P/B 2019 of 0.4x (as for AF-KLM / at a 20% discount to Lufthansa’s P/B multiple in the lows in 2009; IAG was formed in 2011)....
...At yesterday’s close, RTN is valued (pre any forecast changes) on a PE of 8.4x, an EV/EBITDA of 5.8x and FCF yield of 12.6% for FY20E, falling to 7.2x, 5.1x and 16.7% for FY21E....
...In constrast, US processed foods sales at-home are booming, which should pull through demand for Speciality Starches....
...As it is, Chinese citizens are still prevented from obtaining more than a mere 1.1x the benchmark rate from Chinese banks....
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