By Iain Gilbert
Date: Tuesday 08 Sep 2020
LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg cut their target price on audiovisual distributor Midwich from 620.0p to 460.0p on Tuesday, citing "significant disruption" caused by the Covid-19 pandemic.
Berenberg said Midwich's 2020 first-half results reflected the significant disruption caused by Covid-19, with a "considerable reduction" in organic growth and substantial margin headwinds resulting in roughly 82% and 55% cuts to its 2020 and 2021 earnings per share estimates for the group.
However, importantly, the German bank highlighted pressures the company had faced as a result of the coronavirus outbreak may have actually caused no structural damage.
Given the impact on profitability over the course of the full-year, Berenberg expects Midwich's leverage to reach 2.2 times net debt/underlying earnings, which it said was "well within management's targeted range" and should help the company rapidly de-lever as profitability rebounds.
"While there is considerable uncertainty about the market's eventual recovery, Midwich still has the potential to continue its geographic expansion within the $100.0bn AV market," said Berenberg, which also retained its 'buy' rating on the firm.
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Currency | UK Pounds |
Share Price | 440.00p |
Change Today | 0.000p |
% Change | 0.00 % |
52 Week High | 500.00p |
52 Week Low | 340.00p |
Volume | 0 |
Shares Issued | 104.25m |
Market Cap | £458.68m |
Value |
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Price Trend |
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Income |
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Growth |
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Strong Buy | 2 |
Buy | 2 |
Neutral | 0 |
Sell | 0 |
Strong Sell | 0 |
Total | 4 |
Latest | Previous | |
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Final | Interim | |
Ex-Div | 09-May-24 | 21-Sep-23 |
Paid | 14-Jun-24 | 27-Oct-23 |
Amount | 11.00p | 5.50p |
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