22 Oct 2020 08:00
Edison Investment Research Limited Cenkos Securities (CNKS): Strong activity and lean cost base 22-Oct-2020 / 08:00 GMT/BST  London, UK, 22 October 2020 Cenkos Securities (CNKS): Strong activity and lean cost base Cenkos's first half results demonstrated the benefits of its flexible operating model and strength of its client relationships. While challenges related to COVID-19 are set to continue, Cenkos's focus is on growth companies and its fund-raising year-to-date has had a greater emphasis on corporates financing M&A and growth opportunities rather than for defensive purposes. This should prove more sustainable although, as always, the timing of transactions in the encouraging pipeline reported remains uncertain.  Cenkos trades on a price to book multiple of about 1x, well below its 10-year average of 2.2x. Using an ROE/COE model and assuming a cost of equity of 10% and long-term growth of 2% suggests that at the current share price the market assumes a sustainable return of 10.3% for Cenkos. This is ahead of the current relatively subdued level but well below the five-year average of 17%, and is similar to the 11% that could be achieved at the 2019 revenue level once full cost savings are in place and one-off costs fall away. Click here to view the full report.  Subscribe to Edison's content to receive reports by email. All reports published by Edison are free-to-access and available on the website.  About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Andrew Mitchell, +44 (0)20 3681 2500 Martyn King, +44 (0)20 3077 5745 financials@edisongroup.com  Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group- Twitter www.twitter.com/Edison_Inv_Res YouTube  https://www.youtube.com/user/EdisonITV/videos Dissemination of a CORPORATE NEWS, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement. |
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