EQS-News: Edison Investment Research Limited / Key word(s): Forecast/Results Forecast
Edison Investment Research Limited: Edison issues update on Cohort (CHRT)
12-Dec-2016 / 15:15 GMT/BST
London, UK, 12 December 2016 Edison issues update on Cohort (CHRT) Cohort has delivered solid profit growth in H117; this performance is expected to strengthen in the second half. The mix of profitability and reducing minorities has led us to increase our FY18 forecasts by 6% at the EPS level. The progressive dividend policy provides immediate benefit to investors, but the capital progress should also remain attractive. The shares have performed well in recent months, aided by a healthy rerating of peer defence stocks; as a result, our fair value has risen to 485p, supported by the improved cash flow valuation. The strong performance of EID and MCL means the minorities act as a drag on earnings this year. As these should be more fully consolidated in FY18 EPS, we think that is a more realistic base to assess Cohort's progress. The mix of organic growth, healthy margins, rising free cash flow and dividend progression compares favourably to UK defence peers, implying the modest P/E premium that our fair value calculation of 485p (up from 439p previously) indicates is plausible.
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www.edisoninvestmentresearch.com About Edison: Edison is an international equity research firm with a team of over 70 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. Contact details: Learn more at www.edisongroup.com and connect with Edison on:
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