WH Ireland raise target to 370p27 Apr 2017 11:08
WH Ireland have today increased their target price to 370p (from 340p). That's a mere 74% upside from here.....
They say:
"At a price of 370p, the shares would still only be trading on a current PER of 14x, in our view not demanding given the quality of earnings and growth potential, and would still imply a 15% discount to the peer group, illustrating the considerable upside."
In summary:
"Gama Aviation~ Cleared for take-off – positioned for growth on a PER of 8x
Gama Aviation is an international business aviation services provider. After facing a number of challenges in 2016, we believe that management actions have positioned the business well for 2017 and beyond. We anticipate growth to be delivered from a number of fronts, including through the recent tie up with BBA, whilst also seeing further improvements in cash generation. Set against this backdrop, the shares currently trade on a FY 2017E PER of just 8.1x falling to 7.4x, which implies a significant 50% discount to our basket of peers. Reflecting the outlook for Gama, in combination with the valuation multiples currently ascribed, we reiterate our Buy recommendation and increase our target price to 370p (340p)"