NCC19 Jul 2016 18:37
So, back at (or very near) the stock's all-time high. Current forecasts in the market for around 15% growth, but likely to see some upgrades based on latest figures, and also the effect of a weak Sterling. Let's say 10% for the latter, giving an adjusted 2016 base eps of about 12p. Now let's assume 25% growth for the next 2 years - ie comfortably above consensus, then for 2018, we get an eps of about 19p = 2018 PE of 17x. This feels about fair value to me, and whilst good growth prospects will put a floor on this, I do wonder what upside really is over the next 12 months? If the stock gets through 330p, I think I'll take some profits. I originally invested in this stock at 130p, so thankfully, the profits are pretty good!! GLA