The increase of the target price for the share of Jumbo, to 16.40 euros each from 15.60 euros previously, redefining the recommendation “purchase”, was made by Optima Bank.
The investment bank points out that the increase in the target price is based on the exceptionally good cash flows of the listed company in the first quarter of 2021 as a result of the reduced needs for working capital and its improved profitability (annual EBITDA increase of 26%).
The new target price indicates a margin growth of 24% compared to current levels.
Optima Bank notes that its discounted cash flow model suggests a fair price of € 20.50 per share for the Jumbo title, however it made a 20% discount given the low “visibility” of the world of products sold in the following years. quarters due to disruptions in the supply chain from Asia and the surge in fares.
Source From: Capital