JPMorgan starts coverage of Future at 'overweight'

JPM noted that Future operates a portfolio of brands covering 16 content verticals across the UK and US, monetised through three channels: Advertising (35% of revenue), Affiliate (34%), and Direct Consumer (31%).

"Under the leadership of CEO Zillah Byng-Thorne (announced intention to step down in 2023), the company has reinvented itself from a print heritage business into a media powerhouse, building revenues from £66m in 2014 to £826m in FY22E, through both organic growth and substantial M&A," it said.

JPM pointed out that the shares have underperformed year-to-date, down 59% versus the Stoxx 600 media index down 11%, and de-rated on reopening concerns, rising rates and announced leadership changes.

"On re-set valuation (6.7x EV/EBITDA23 for +9% EBITDA CAGR23-25E) and resiliency in earnings, we see valuation offering an attractive entry point," it said.