UK Markets closed

Edison Investment Research Limited: Claranova (CLA): On track for strong earnings growth

·2-min read

Edison Investment Research Limited
15-Oct-2020 / 09:19 GMT/BST

 

London, UK, 15 October 2020

Claranova (CLA): On track for strong earnings growth

Claranova reported strong organic revenue growth in FY20 while the EBITDA margin reflected the immediate strategic priorities of PlanetArt and Avanquest. The recent acquisition of CafePress is part of PlanetArt's evolution to become a provider of personalised e-commerce and we have revised our forecasts to incorporate the deal. We note the group's strong cash position which provides funding for future internal and external investment.

 

Reflecting the different business models and minority interests for each division, we continue to use a sum-of-the-parts approach to valuation. Based purely on peer group averages per division, we calculate a fair value of €15.33 per share. However, once multiples are adjusted to reflect our views on the growth and profitability of each division, we calculate what we believe to be a more realistic valuation of €12.12 per share (up from €11.52). Factors that could provide upside to our estimates would be sustained high demand for photo printing, successful adoption of the FreePrints Gift app in the US and returning recent acquisitions to profitability.  


Click here to view the full report.

 

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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.

For more information please contact Edison:

Katherine Thompson +44 (0)20 3077 5730

tech@edisongroup.com

 

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-investment-research

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv


Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

End of Announcement - EQS News Service

show this
show this