EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
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Fortnightly Publication Highlighting Latest Insights From IRF Providers

Company Research

Games Workshop (GAW LN) UK

Consumer Discretionary

Fighting Financials

The shares are not cheap, trading at a 4% FY25E FCF yield. However, this is for a company with significant long-term pricing power, a track record of double digit revenue growth and no debt. Consensus forecasts imply growth turns negative in H2, but Fighting Financials thinks this is unlikely and anticipates upgrades to FY numbers. Ultimately, they like the opportunity mainly as a hedge to a book of UK shorts. In FY24, only 22% of the group’s core revenues were UK-based, with 44% derived from North America. With the strong USD likely to persist, they see GAW as a rare example of quality and therefore a relative winner in an otherwise troubled and low-growth UK stock market.

Edition: 203

- 24 January, 2025


Compass (CPG LN) & BAE Systems (BA/ LN)

Consumer Discretionary / Industrials

Willis Welby

Willis Welby looks at UK growth names (>$2.5bn M/Cap) that have not shared in the share price rises since Oct 26th. CPG has seen analyst downgrades despite a robust update during Nov, but looks like a very strong compounding story that is not expensive and makes great sense at current prices. However, it is BAE that really stands out. The defence contractor has seen upgrades to consensus Y2 EBIT over the last three months and more recently has announced more good news on orders. Relative to US peers that implied to Y3 EBITM ratio of <60 looks way too low. Other stocks discussed in their report include AstraZeneca and Games Workshop.

Edition: 176

- 22 December, 2023