AFH Financial: Liberum still a buyer, but trims target
(CercleFinance.com) - Liberum has reinstated its "buy" rating on the share of the financial advisory group, AFH Financial Group, given significant upside potential of 76% relative its target price, which it has cut from 568 pence to 484 pence.
"AFH continues to grow at an impressive rate compared to peers in a tough market environment," the broker says, which points to new business written that is up 46% yoy and an increased EBITDA margin of 23%.
Liberum also highlights that the stock is trading at an historically low level, with a price at 8.2x0 expected EPS for 2020. It has reduced its 2020 EPS estimate after a change in the revenue model of the group's Protection business.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"AFH continues to grow at an impressive rate compared to peers in a tough market environment," the broker says, which points to new business written that is up 46% yoy and an increased EBITDA margin of 23%.
Liberum also highlights that the stock is trading at an historically low level, with a price at 8.2x0 expected EPS for 2020. It has reduced its 2020 EPS estimate after a change in the revenue model of the group's Protection business.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.