Consumer Discretionary
Stepping into the light - share price jumps following the company’s FY update. Long-term bull Andrew Hollingworth thinks the rerating has only just begun. This is a company that has been through an extensive period of re-invention and investment. Its accounting has been uber prudent especially with reference to inventory and its store portfolio. Almost all investors have been referencing potential profitability vs. that recorded in this investment period. This has been an error. It has always been likely that post investment period margins would be better than its past peaks, due to discounting then and elevation now. TP £13.00+ (45%+ upside).
Edition: 141
- 05 August, 2022
Consumer Discretionary
A forgotten and neglected share - few investors take the company seriously and fewer properly think through its market position and what it could become/the profits it could produce. Andrew Hollingworth discusses the margin recovery story underway and why he believes the price of the employee earn-out (£10.00) and Mike Murray’s new incentive (£15.00 in just 4-yrs) are realistic targets despite the startling difference when compared to today’s share price of 680p. FRAS remains a high conviction Buy.
Edition: 118
- 03 September, 2021