The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Great start to the day and at least we don’t have someone like Cevian selling into the rise . Think even when it’s goes ex div , the buy back machine will go in extra heavy to bring it back up to £4.80 . Lower interest rates in 2H should keep it at this level . £5 plus doesn’t seem unreasonable .
The company has been the subject of takeover speculation, with the Italian insurer Generali reportedly looking at it.
Blanc shrugged this off as “random market chatter”. A number of UK companies have attracted takeover interest recently, including Aviva’s rival Direct Line, which rejected a £3.1bn offer from a Belgian insurer as “highly opportunistic” last week.
“If you look at most UK stocks today, you would say that they’re probably not at the valuation that they should be at”, Blanc said, pointing to Brexit, the pandemic, the turmoil around the mini-budget and other issues.
“Certainly, we would say that there’s plenty of room to go in our share price. But we are really focused on the things that are in our control, which is the brilliant performance of the business.”
https://www.theguardian.com/business/2024/mar/07/avivas-profits-rise-as-demand-for-uk-private-health-insurance-booms?ref=biztoc.com
It's not only the increase of say 5% in the dividend cash pot , but also the reduction in shares via the buyback process, so double benefit..
Add in some interest rates cuts in the 2H, and target a yield of 7%, based on the next dividend being say 35.6p, gives a target share price of £5 plus this time next year.
We are only at the level today where we should have been after the "return of capital" , but things went the wrong way after SV Bank and interest rates climbing.
The 2025 buy back will keep it above £5.
Expecting a rise to £4.65 ish when interest rates start to decline. Doesn't matter if it starts in Q2 or Q3, just so long as it does. I'd like to see £5 in early 2026, and be content with the 2024 and 2025 dividends. GL.
Only a 5% improvement in dividend. Disappointing for existing shareholders. SP £2.50 plus 5% £2.62p . Lots of big numbers, plus dilution.. so not sure what the SP should be based on dividend yield.
Guess they bought a bit too early as prices got a bit cheaper at points over the last month , but looks like the dividend is great at these levels.. and the price is near £9 today.. I look forward to my first dividend.
I'm thinking the same. Might have to wait 12mths plus for interest rates to come down 1%, but the trend will be set and the dividend/share increases slightly each year , so with additional buybacks each year, the SP has a chance of going back to 460p plus within 12 mths.. Might also be a £100m top-up buy back starting soon.. will know more on Wed . GL.
I've recently got into these. Div is juicy and scope of returning to £10/share seems realistic. Directors also just bought a stack load.. but risky. Other Israeli stocks seemed to be doing very well before the attack..