Marlowe seen 'firing on all cylinders' at Berenberg
After a strong set of results from Marlowe on Monday morning, analysts at Berenberg said the firm appeared to be "firing on all cylinders" as it successfully delivered on every strategy area outlined by the broker in its initiation note on the group.
Financial Services
14,075.11
17:09 19/04/24
Marlowe Holdings Limited (DI)
135.00p
16:55 30/03/16
Through organic and acquisitive growth, as well as faster-than-expected margin expansion, Marlowe achieved an 11% beat against Berenberg's 2018 earnings per share estimate.
Looking ahead, the broker stated that Marlowe looked set to continue to consolidate its highly fragmented endmarkets, aim to enter additional verticals and continue to benefit from its increased scale, driving further organic growth and margin expansion.
Berenberg updated its estimates to account for a "higher base of earnings", as well as acquisitions made since its last update, noting that it felt management's guidance for the following years was "incredibly prudent", assuming minimal contributions from certain acquisitions, no-cross selling success, limited organic growth and margin expansion.
"Our view is that a combination of each of these is likely and we expect further upgrades to guidance from both organic and acquisitive growth," the broker said.
All in all, Berenberg increased its EPS estimates by 1-4%, reiterate its 'buy' rating on the firm and raised its price target from 500p to 550p.