Hints and tips:
...We est. the value of the Services LOB (est. 1/4 of core revenues) at about 4/5 of Citi’s market cap ($75B vs $99B as of Dec. 29, 2023) assuming a P/E of 12-13x on 2024E earnings of $6B....
...We therefore prudently apply a P/E contribution (50%) to our valuation and use a 10x multiple, which we see as appropriate for a company with uncertain growth prospects and a suspended dividend....
...However, the sales unwind into 2H20-1H21 could be significant, which is a risk given a 2021e P/E ratio of almost 27x....
...The slack is only partly taken up by France P&C which is over distributing....
...However, it also guided to net E&C margins (E&C is ~75% of revenues) of only 2.0-2.25% versus our prior forecast of 4.7% and a ‘normal’ expectation of 5-6%....
...It is tempting to view Imperial’s valuation (5.7x CY21E P/E, 6.0x EV/EBITDA, 16.5% FCF yield, 9.0% dividend yield) as a very attractive buying opportunity....
...At our PT, the stock would trade at an average 2020/21 P/E of 7.9x, -17% vs. last 24M average P/E; this discount is justifiable, in our view, given Centrica's tight balance sheet. • Updates to follow....
...Improved profitability not reflected in P/E: The CFROI has increased to be double the market, but the P/E relative is on a 15% discount to the market (roughly in line with its historic norm)....
...We expect underlying FCF of c.>€1.1 bn in 2021E and FCF to be positive ex WC from 2022. Valuation - Renault trades at c.4.2x 2021E P/E, a c.10% discount to its 3-year median....
...The bulls will point to a P/B below 1, FY21e EV/EBITDA of 4x and EFCF Yield of 8% as evidence of clear value....
...There’s a rejig of forecasts on a Norway tax break and a bit of fantasy M&A, which seems to be obligatory in E&P notes at the moment....
...This puts the sector on a relative P/E premium of 29% on NTM+1 (Apr 21-Mar 22), 18.5x for Beverages vs 14.3x for the Market....
...BT trades on 2021/22E 5.8x P/E and a 7.9% dividend yield....
...Valuation: Our 12-month price target of 5,300p (unchanged) is DCF-derived and implies a 16x FY22E P/E multiple. Given limited upside, we downgrade the stock to Neutral (from Buy)....
...A 5G network can have a non-standalone core (i.e. 5G technology layered onto a pre-existing 4G core) or a standalone (5G only) core....
...Next currently trades at c.10.5x FY20 P/E but doesn’t offer its usual strong cash returns currently....
...At c30x P/E, we do not feel valuation fairly reflects these risks and thus downgrade to Sell with a GBp385 price target, suggesting c30% downside from current levels....
...We see fair value 12m forward P/E of 21x (if the TIPS yield falls to -2%). • Excess liquidity remains highly supportive: Growing at 20%, consistent with a 90% re-rating....
...At 28.7x P/E CY21, we move to Sell from Neutral. Burberry has already underperformed peers YTD... Burberry’s share price has underperformed the luxury peers by c.12% year to date....
...Our last published fair value of 440p (29% upside) is equivalent to a P/TNAV multiple of 0.79x....
...” payout ratio of 71% after reducing last year’s earnings by 33%; (e) an equity cap of $23 billion vs. $8 billion for the index; and (f) trades at a trailing 12-month P/E multiple of 11x vs. 14x for the...
...Securitas trades on a 2021E P/E of 11x (13x 10Y median) and G4S on 6x (11x 10Y median). They trade at cycle lows vs. the OMX/ASX indices....
...A V-shaped recovery in kneecaps isn’t in the price, they say....
...P/E, a c.30% premium to the sector (incl. ASOS and boohoo). JD Sports’s shares have declined c.50% in the last few months, and we see this as an entry point to one of the finest UK retail stocks....
...trades at 19.2x 2020E P/E or 15.1x EV/EBITDA....
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