Cello Health (CLL)

Sector:

Health Care

Index:

FTSE AIM All-Share

 161.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 163.50p
  • 52 Week Low: 101.00p
  • Currency: UK Pounds
  • Shares Issued: 106.69m
  • Volume: 30,263
  • Market Cap: £171.77m
  • RiskGrade: 352

Broker snap: Cello to add more strings to its bow

Date: Friday 17 Sep 2010

LONDON (ShareCast) - Singer Capital Markets is initiating coverage of market research and consulting group Cello with a positive recommendation, saying that most of the company’s earn out obligations from previous takeovers are behind it and the company is in a position again to expand through acquisition.

The company’s recent interim results demonstrated a return to positive growth despite extreme near term headwinds in the public sector, which Singer rates as “an exceptionally strong performance in this context.”

The broker thinks there are three main reasons to buy the shares.

First is the aforementioned revenue growth. “Acquisitions are back on the agenda and will enhance growth. Cello’s biggest business segment, Healthcare, is driving growth and international expansion offsetting the short term public sector headwind,” the broker said.

Cello chief executive Mark Scott told Sharecast earlier this week that the company “will buy again, probably in America” and that the plan is to double the size of Cello in the next two or three years.

The second reason to buy cited by Singer is the company’s strong positions in market research and healthcare. These are “scarce assets in a consolidating market.”

The broker also believes the shares are undervalued because the earnings are in the low part of the cycle. Compared to the valuation of its peers, the stock is cheap, and Singer thinks it is also undervalued on a sum of the parts (SOTP) basis and as a prospective takeover target.

The stock trades on 6.6 times projected earnings per share for 2010 while the ratio of enterprise value to earnings before interest, tax, depreciation and amortisation is just 4.6.

“This is clearly low,” the broker argues. “If the share price does not recover then it is possible that Cello could become a target, given the scarcity value of its two operating units. We use a blended SOTP and peer based valuation to derive our 12 month target price, which we set at 71p, indicating over 50% upside,” the broker concluded.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Cello Health Market Data

Currency UK Pounds
Share Price 161.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 163.50p
52 Week Low 101.00p
Volume 30,263
Shares Issued 106.69m
Market Cap £171.77m
RiskGrade 352

Cello Health Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
86.02% below the market average86.02% below the market average86.02% below the market average86.02% below the market average86.02% below the market average
Sector averageSector averageSector averageSector averageSector average
Price Trend
81.60% above the market average81.60% above the market average81.60% above the market average81.60% above the market average81.60% above the market average
53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average
Income
76.62% below the market average76.62% below the market average76.62% below the market average76.62% below the market average76.62% below the market average
38.46% above the sector average38.46% above the sector average38.46% above the sector average38.46% above the sector average38.46% above the sector average
Growth
30.41% below the market average30.41% below the market average30.41% below the market average30.41% below the market average30.41% below the market average
47.06% below the sector average47.06% below the sector average47.06% below the sector average47.06% below the sector average47.06% below the sector average

What The Brokers Say

Strong Buy 0
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 1
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Cello Health Dividends

  Latest Previous
  2nd Interim Interim
Ex-Div 23-Apr-20 03-Oct-19
Paid 22-May-20 01-Nov-19
Amount 1.00p 1.15p

Trades for 07-Aug-2020

Time Volume / Share Price
16:30 618 @ 160.00p
16:03 11,000 @ 160.00p
16:01 8,003 @ 160.00p
15:21 310 @ 160.00p
15:19 8,000 @ 160.00p

Cello Health Key Personnel

CEO Mark Scott

Top of Page