Berenberg raises target price on Warpaint London
By Iain Gilbert
Date: Monday 10 Feb 2025
(Sharecast News) - Analysts at Berenberg slightly raised their target price on cosmetics firm Warpaint London from 680.0p to 700.0p on Monday, noting the group's margin management was not to be overlooked.
Berenberg said Warpaint's minor revenue miss reported in its FY24 trading update did not detract from its conviction in the sustainability of the group's growth opportunity.
"We see the -28% share price reaction since the announcement as an overreaction given our perception of the cyclicality of the slowdown," said Berenberg, which has a 'buy' rating on the stock.
The German bank also noted that Warpaint reported revenues that were 4% below consensus in FY24, yet crucially, it stated this was followed by "a sharp reacceleration in growth" through January, to 15% year-on-year.
"While the weakness in December is disappointing, we continue to see a significant runway of revenue growth ahead, primarily due to the yet-to-be-won component of the existing customer store estate, which Warpaint is pursuing expansion within," concluded Berenberg.
Reporting by Iain Gilbert at Sharecast.com
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