RE: 70p Target7 Jan 2024 20:31
“It is one of the biggest contractors for the Government, managing the payment of TV licenses and recruitment for the British army. It still generates revenues of close to £3 billion at a margin that has significant upside, following a sizable restructuring of the business over the years by outgoing chief executive Jonathan Lewis.”
He highlights that revenues are now growing again, adding “If the company can earn a 5.5% margin on its revenue base and the company is more appropriately valued at 11x operating profit, then the shares could more than TREBLE from here.”
Just on the cusp of a MASSIVE rerate imo
Risk / Reward
In our favour I believe
Microsoft on our team now