logo-loader
viewMajestic Wine PLC

Liberum ups target for Majestic Wine amid growing exposure and customer growth spending

The City broker said the group’s results for the 2018 financial year had confirmed progress had been made as well as being a “significant” surprise

Wine glass
Analysts also said that the firm’s retail arm has shown it could achieve sustainable growth

Analysts at Liberum Capital have upped their target price for wine retailer Majestic Wine PLC (LON:WINE) to 535p from 500p, citing a growth is exposure and its plan to boost customer growth spending.

The City broker said the group’s results for the 2018 financial year had confirmed progress had been made as well as being a “significant” surprise “ahead on FCF [free cash flow], EPS [earnings per share] and dividends”.

READ: Majestic Wine swings to profit in full-year results despite “challenging” retail climate

They added: “The group is increasingly well balanced with growing exposure to both online and international markets and we see the acceleration in customer growth spend as sensible capital allocation”.

Analysts also said that the firm’s retail arm has shown it could achieve sustainable growth despite a challenging UK market and some “significant FX and exogenous shocks”.

In its full-year results released on Thursday, Majestic swung to a profit but warned that a “challenging” UK retail market was likely to continue and possibly worsen through next year.

The AIM-listed wine seller reported a pre-tax profit of £8.3mln, up from a £1.5mln loss the year before, while revenues climbed to £476.1mln from £465.4mln previously.

In late-morning trading Thursday, Majestic Wine shares were up 1.7% at 458p.

Quick facts: Majestic Wine PLC

Price: 262 GBX

AIM:WINE
Market: AIM
Market Cap: £190.33 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Parkway Minerals focuses on technology after recent...

Parkway Minerals NL (ASX:PWN) executive director Bahay Ozcakmak updates Proactive on its recent acquisition of unlisted company Consolidated Potash Corporation, which gives Parkway an advanced stage potash project and ownership of an innovative brine processing technology. The executive...

21 hours, 17 minutes ago

2 min read