Shore Capital starts On The Beach at ‘buy’
On The Beach Group
157.60p
15:45 15/11/24
0.64%
1.00p
Shore Capital initiated coverage of On The Beach on Monday with a ‘buy’ rating, with a fair value of 170p and 75% upside potential.
FTSE All-Share
4,411.85
15:45 15/11/24
n/a
n/a
FTSE Small Cap
6,802.32
15:45 15/11/24
n/a
n/a
Travel & Leisure
8,607.27
15:45 15/11/24
-0.29%
-25.35
"On the Beach (OTB) is a leading player in the short haul beach holiday market," the broker noted.
"Whilst revenue has returned to pre-pandemic levels, profit remains lower, and the group is facing competition from the rise of well-known travel names offering package holidays.
"On just circa 3x FY23F EBITDA, we believe the market is overly discounting this competitive backdrop along with near-term concerns on the supply/demand balance."
ShoreCap said it sees broadly favourable seat capacity with a significant market share opportunity.