Cavendish Uograde25 Apr 2024 09:57
At 28.8p, the stock trades on FY2024E P/E and EV/EBITDA of 21.7x and 11.0x respectively. As of yearend 2024, we expect the company to have around £47m of net cash on the balance sheet, or around 7p per share. On an ex-cash basis, the 2024E P/E (stripping out the net interest generated on the cash) would be 18.9x. At our new target price of 40p, the EV/EBITDA, P/E and ex-cash P/E would be 16.4x, 30.7x and 29.0x respectively. We see these multiples as reasonable bearing in mind the growth, cash generation and quality of the business.