Warpaint London (W7L)

  • Change Today:
  • 52 Week High: 600.00
  • 52 Week Low: 262.50
  • Currency: UK Pounds
  • Shares Issued: 77.26m
  • Volume: 354,028
  • Market Cap: £455.82m

Berenberg initiates coverage of W7 owner Warpaint at 'buy'

By Michele Maatouk

Date: Thursday 18 Apr 2024

LONDON (ShareCast) - (Sharecast News) - Berenberg initiated coverage of Warpaint on Thursday with a 'buy' rating and 550p price target as it said the company's highly cash-generative business model and debt-free balance sheet support strong top-line growth.
Warpaint owns the W7 and Technic cosmetics brands. Berenberg noted that its products are among the most affordable in their categories and are distributed across major retail outlets with significant store estates.

"Historically, the business has experienced some challenging periods of end-market performance, linked to the struggling UK high street," it said.

"However, it now has a more diversified and strengthened approach, delivering capital appreciation and persistent end-market outperformance. We expect this to continue given an array of structural and company-specific opportunities ahead."

The bank highlighted a significant margin recovery, noting the gross margin has expanded by 800 basis points since FY 2020, which it perceives as sustainable.

"Historical margin expansion has been driven by growth in end-market volume, coupled with management's strategic decision to refine its non-branded sales focus and acquire its US sales and marketing platform.

"We forecast end-market growth to be volume-driven and supportive of further margin expansion. We project gross margin expansion of 120bp from FY 2024E to FY 2028E."

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W7L Market Data

Currency UK Pounds
Share Price 590.00p
Change Today -5.00p
% Change -0.84 %
52 Week High 600.00
52 Week Low 262.50
Volume 354,028
Shares Issued 77.26m
Market Cap £455.82m

W7L Star Ratings

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What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

W7L Dividends

  Latest Previous
  Final Interim
Ex-Div 13-Jun-24 09-Nov-23
Paid 05-Jul-24 24-Nov-23
Amount 6.00p 3.00p

Trades for 18-Jun-2024

Time Volume / Share Price
13:42 50,000 @ 590.00p
12:28 50,000 @ 590.00p
13:44 35,000 @ 590.00p
16:09 5,814 @ 596.00p
17:07 10,500 @ 590.00p

W7L Key Personnel

CEO Samuel Bazini

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