Smiths News (LON:SNWS) Receives "Buy" Rating from Berenberg Bank

Key Points

• Berenberg Bank reiterated a "Buy" rating on Smiths News with a GBX 85 target, implying about a 26.35% upside from the prior close.
• The shares trade around GBX 67.28 with a market cap of £162.83m and a low P/E of 5.95, but the company has a very high debt-to-equity ratio (338.95) and liquidity below 1 (current ratio 0.94, quick ratio 0.83), signalling leverage and short-term coverage risks.
• In the latest quarter Smiths News reported GBX 5.20 EPS on £515.7 million revenue, showing a net margin of 2.66% and an unusually high ROE (744.74%), while analysts forecast about 10.56 EPS for the year.

Smiths News (LON:SNWS - Get Free Report)'s stock had its "buy" rating restated by Berenberg Bank in a research report issued to clients and investors on Wednesday,Digital Look reports. They currently have a GBX 85 price objective on the stock. Berenberg Bank's target price suggests a potential upside of 26.35% from the stock's previous close.

Smiths News Price Performance

Shares of LON:SNWS opened at GBX 67.28 on Wednesday. Smiths News has a fifty-two week low of GBX 53.20 and a fifty-two week high of GBX 79.40. The business has a 50-day moving average of GBX 66.30 and a two-hundred day moving average of GBX 67.85. The stock has a market capitalization of £162.83 million, a P/E ratio of 5.95, a P/E/G ratio of 0.29 and a beta of 0.33. The company has a debt-to-equity ratio of 338.95, a current ratio of 0.94 and a quick ratio of 0.83.

Smiths News (LON:SNWS - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported GBX 5.20 earnings per share for the quarter. The company had revenue of £515.70 million during the quarter. Smiths News had a return on equity of 744.74% and a net margin of 2.66%. On average, equities research analysts predict that Smiths News will post 10.5555556 EPS for the current fiscal year.

Smiths News Company Profile

In 1792 we started delivering the nation's newspapers. Today, we're proud to be the UK's largest wholesaler of newspapers and magazines, serving 24,000 retailers from superstores to corner shops. Service and efficiency put us at the forefront of our industry and with 55% market share we are the leading player in one of the world's fastest-moving supply chains. Our teams go further, when others stop, striving to meet the highest standards in all we do.

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