Davy starts Moonpig at 'neutral', says valuation full

Moonpig was under the cosh on Wednesday as Davy initiated coverage on shares of the online greeting card retailer at ‘neutral’, with a 345p price target.

Davy said the valuation looks full despite the "rather anaemic" equity performance since it went public in February 2021 at 350p.

"The longer-term 20/23 view seems unlikely to match either the business performance prior to IPO or the Covid-inspired bump," it said.

Davy said the risk/return profile was not compelling.

At 1240 BST, the shares were down 4.9% at 283.80p.