finnCap Research Company Notes - 29 October 2018

Oct 29, 2018 / Research Notes

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Sector: Energy

President Energy (PPC): Q3 2018 management accounts

Key data                              

  • Share price (p): 8.1
  • Target price (p): 18.0
  • Market cap (£m): 88.0
  • Enterprise value (£m): 102.9

President’s Q3 management accounts again demonstrate that the Argentine financial crisis is not having a detrimental impact and that the company is starting to generate material earnings growth, with EBITDA more than doubling q/q. Activity is ramping up into 2019 with the benefits of its three-well development drilling programme on Puesto Flores still to register, the acquisition of two additional concessions in the Neuquen basin still to come this year, plus additional development drilling in Argentina and a return to exploration drilling in both Argentina and Paraguay in 2019.

Jonathan Wright | jwright@finncap.com

Sector: Support Services

Lok'nStore (LOK): NAV ahead of forecasts, growth potential remains strong

Key data                              

  • Share price (p): 374.0
  • Target price (p): 609.0
  • Market cap (£m): 109.5
  • Enterprise value (£m): 141.7

NAV per share increased by +15.3% (our forecast +3%) to 480p in FY 2018 and EBITDA increased by +12.3% (in line with our forecast) as both the existing and new stores traded well. The secured pipeline will add 32% to available space and with the UK market still undersupplied, the outlook for value creation from both the existing stores and potential new ones remains very strong. We have raised our NAV-based target price to 609p from 521p, factoring in the latest valuation and rolling forward a year.

Guy Hewett | ghewett@finncap.com

 

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