Canaccord Genuity lowers target price on Braemar
By Iain Gilbert
Date: Friday 01 Nov 2024
(Sharecast News) - Analysts at Canaccord Genuity lowered their target price on shipbroking services business Braemar from 410.0p to 380.0p on Friday following the recently announced increase to the UK Employers National Insurance rate.
Canaccord Genuity stated that based on previous precedent, accrued bonuses at FY25 will be paid in the new tax year and estimates that an extra 1.2% on end FY24 accruals will deliver a £300,000 adverse impact.
Additionally, Canaccord also calculated a further £150,00 adverse impact for FY25 on share-based remuneration. On a full-year basis, the analysts see a £750,000-800,000 in FY26.
"We have thus reduced our forecasts and target price as a result. With interim results due on 6 November 2024, we think this will provide more on the trading outlook for the company," said the Canadian bank.
"We think Braemar shares offer: 1) scope for sector multiple expansion from a potential (non-linear) super-cycle emerging in shipping (rising demand, too few new ships); 2) multiple restoration and thus expansion as new management shows its capabilities; and 3) potential for significant upside from targeted expansionary investment - where the impact on Braemar can be significant."
Reporting by Iain Gilbert at Sharecast.com
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