Decent in line update off the back of expected very challenging market. I can see another broker upgrade today but no details. Looks like FY25 forecasts not lowered... green shoots at the cyclical low? Seems very decent risk reward, with management seemingly excellent cost controllers |
I emailed the company and the CFO (very nice of him to reply so promptly) confirmed it should be on Tuesday 28 Jan. |
Hoping to see a Trading Update any day now. Wasn't it about this time last year? Would be good to see Berenberg's optimism backed up. |
Massive upgrade today. Eurocell Plc ECEL.L: Berenberg raises target price to 300p from 200p |
Hello, I've taken a punt as I like the forecasts. Also, of course, perhaps construction may pick up but new Gov. is starting to look a bit out of its depth.
Hey ho. |
Top of the cycle earnings are not going to be 22p this time . Eurocell has taken significant market share , think we might get close to 30p in the housing recovery which is already underway |
 Eurocell poised for recovery, says Berenberg
Eurocell (ECEL), the provider of uPVC products, is geared toward the recovery of the housing market and should be boosted by Labour’s plans to build more homes, says Berenberg.
Analyst Robert Chantry retained his ‘buy’ recommendation and target price of 180p on the stock after a site visit to the Wembley branch with senior management. The shares rose 2% to 154p at the end of last week.
‘While no material new information was disclosed, there were definitely some useful takeaways,’ Chantry said.
He described the new site, which opened in April, as a ‘prime example of the potential changes and opportunities that can be created under Eurocell’s new strategic plan within its 211-site branch network’.
The company has an 85:15 weighting towards trade and new build and commercial build, meaning its revenues are ‘very much geared into a recovery in UK housing volumes and the associated dynamics around affordability, housing transactions and confidence’.
‘Recent policy proposals from the new Labour government certainly paint a brighter picture than what we have seen in recent years, and Eurocell’s new strategy amplifies that potential,’ said Chantry.
hxxps://citywire.com/funds-insider/news/expert-view-direct-line-rank-ilika-galliford-try-eurocell/a2446310?page=5 |
CMD might overstate it but my info is they hosted institutions recently |
Ha, posted the above and then realised they have just had a CMD |
Previous CEO couldn’t work out his place in the supply chain (processor, manufacturer or B2B retail), hopefully the new one does. |
ECEL are very operationally geared, so a nice way to play any recovery in housebuilding or construction. Also has a strong balance sheet, as well as a newish CEO who seems to have much more ambitious growth plans than his predecessor. |
If interest rates stay highThe economy stays depressed House building remains at lows not seen for decadesYou'll do ok here .If they all revert to mean as looks increasingly likely then you'll make a lot of money |
Nice tick up.
Labours house building plans will help. |
According to stockopedia, forecasts for this year and next have been raised 11 and 13% |
So ECEL dividend yield is currently 4.23% |
I always work it out manually by using actual interim and final divi pence per share then divide by the share price. Their data is based on past divi payments and don't adjust them until months later especially when companies are cutting their dividends. you also need to read rns for the past 12 months to factor it all especially when researching liabilities and debt . They just get the actual reported accounts when they're formally released |
Thanks - Stocko is a nightmare afa dividends go: still reporting 7.36%.
This has a very similar chart to KGH; and both highly rated on metrics. |
Divi yield is about 4% - they reduced the final. Otherwise agree with you. |
I'm with you. I took a position on Monday after watching the full year presentation on Investor Meet. I was quite impressed by the CEO & CFO. |
Why is this share so overlooked? Director buy today; divi over 7% apparently covered; and scores in the 80s for value and quality on Stocko. There is of course some debt, but seems manageable. And chart is a peach.
What am I missing? |
What was behind that sudden rise I wonder? |
That was a better report the forward guidance with all risk clearly explained with a plan to be well placed when recovery in conditions occur. |
The new CEO was appointed at the AGM on 12 May when the profit warning was given so he can't be accused of misleading anyone. The previous "misleading" guidance was given on 16 March when the old CEO was in charge. I can understand the fall in the RMI market and the subsequent profit warning from the highs of the previous year when everyone and their uncle were doing up their properties during the COVID lockdown. On top of that the war in Ukraine has caused chaos so probably a bumpy couple of years ahead, before things pick up. |
If you mislead the markets you get punished I'm afraid it means nobody can trust what the CEO says. These are at the lowest share price since they were first listed if you cannot give honest forward guidance don't be surprised to see these go even lower. |
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
Hot Features
Premium
