Berenberg stays at 'buy' on The Pebble Group

Berenberg said Pebble Group's H1 earnings were in line with its July trading update and noted that management reiterated that the company was on track to meet FY24 market expectations.

Group revenue was £60.8m and adjusted underlying earnings came to £7.4m, down 4% and 1% year-on-year, respectively, whie both Brand Addition revenues and Facilisgroup KPIs were considered "positive indicators" of the overall health of the promotional products market.

"The group looks to have made operational progress over the last 12 months including key new hires as Pebble aims to accelerate growth, and we expect the company to benefit from these actions when the industry recovers. We trim our forecast due to more unfavourable FX rate assumptions. The shares trade on 12.3x CY24 P/E," said the German bank.

Berenberg stood by its 'buy' rating and 150.0p target price on the stock.

Reporting by Iain Gilbert at Sharecast.com