Peel Hunt is upbeat on prospects for Stanley Gibbons, the stamps and autograph specialist, on the back of a strong first quarter for the group and its moves to become global via an online presence.
In its AGM statement in April the company reported robust first quarter trading with underlying revenues ahead 24%. That together with the group having started the year with a high level of product to meet demand, suggests to Peel Hunt that it should see a healthy increase in sales in the current year.
The launch of its retail internet site in May, meanwhile, should enable the company to monetise its substantial holdings of lower value stamps which have not been available for purchase on the old site.
Looking ahead the company is hoping to capitalise on global interest in its offerings by launching a new website for trading stamps. It is also developing a presence in China, where Peel believes there are “substantial” opportunities for the company.
It is estimated there are 20 million collectors in China.
All these positive developments together with the Stanley Gibbons brand globally suggests to Peel that there is significant potential for it to grow internationally, which should be accelerated with the launch of the new website. It retains its buy rating on the stock but has upgraded its target price from 200p to 215p. Late morning its shares stood at 190p.