Edison Investment Research Limited
Edison issues outlook on Findel (FDL)
Wednesday, June 19, 2019 9:05 AM
LONDON, UK / ACCESSWIRE / June 19, 2019 / Studio, the main customer-facing business for Findel (LSE: FDL), is delivering impressive results and improvements across all key performance metrics through its unique digital-first value proposition with integrated consumer credit, which sets it apart from the peers. Despite a recent rebound in the share price the stock remains significantly undervalued for a predominantly online retailer with a strong balance sheet and significant growth opportunities. We forecast a two-year EPS CAGR of 7.3%.
Despite a rebound in the share price following the recent upbeat post-close trading update and results, FDL trades on a lowly FY20e P/E of 8.9x. This appears unjustified given the strength of trading for this predominately online retailer, the significant market opportunities and ongoing reduction in core net debt. Our blended DCF and peer valuation increases to 423p (previously 348p), reflecting a sector re-rating and our forecast upgrade in early May, and represents a significant c 60% premium to the current share price.
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:
Kate Heseltine, +44 (0)20 3077 5700
Russell Pointon, +44 (0)20 3077 5700
Learn more at www.edisongroup.com and connect with Edison on:
SOURCE: Edison Investment Research Limited