finnCap Research Company Notes - 23 October 2018
Oct 23, 2018 / News
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Sector: Industrials
Flowtech Fluidpower (FLO): Q3 trading update: on track, no surprises
Key data
- Share price (p): 114.0
- Target price (p): 200.0
- Market cap (£m): 67.5
- Enterprise value (£m): 85.4
Overall trading was in line for the nine-month period, with revenue growth of 54%, of which organic growth was 6.7%, with a significant boost gained from the acquired Balu operations. Q3 was solid, but as previously signalled, the buoyancy seen at the start of the year has now settled to a steadier pace, with a cautious tone for the outlook for 2019. We reiterate our recently reduced forecasts. The shares remain deeply oversold, on a substantial discount to its peers. We see significant upside once growth is delivered on schedule, which should provide a catalyst to narrowing the current valuation gap.
David Buxton | dbuxton@finncap.com
finnCap operates an ‘access-for-all’ approach for corporate research, approved by the FCA and paid for by finnCap’s corporate clients.
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