Essentra (ESNT)

Sector:

Support

Index:

FTSE 250

411.40p
   
  • Change Today:
    -0.80p
  • 52 Week High: 442.00
  • 52 Week Low: 325.40
  • Currency: UK Pounds
  • Shares Issued: 263.18m
  • Volume: 60,393
  • Market Cap: £1,082.71m
  • Beta: 1.09

Citigroup downgrades Essentra after profit warning

By Michele Maatouk

Date: Tuesday 24 Jan 2017

LONDON (ShareCast) - (ShareCast News) - Citigroup downgraded Essentra to 'neutral' from 'buy' and cut the price target to 430p from 500p following the company's third profit warning in the space of a year on Monday.
The maker of cigarette filters and plastic packaging cautioned that it expects profit to be below expectations due to operational issues at its health and personal care packaging unit.

For the 2016 calendar year, it expects operating profit to be at the bottom of or modestly below its previous guidance of £137m-£142m. The company said that due to continuing operational issues in the Health & Personal Care Packaging unit, there was a further "significant" decline in revenue and profitability during the last two months of 2016, and there is no expectation of a near-term improvement in 2017.

Citigroup cut its earnings per share forecast for FY16 by 4%, for FY17 by 22% and FY18 by 21% as it incorporates further margin erosion. The bank now expects profit to drop to £12.9m in the second half of 2016 from £22.1m in the first half.

Citi said that in FY17, further measures will need to be taken to stabilise costs at underperforming sites and improve service levels to re-ignite sales. While these measures are being taken, it expects H&PC margins will remain depressed, declining to 6.5% in FY17 from 13.6% in FY15."

"Following successive earnings downgrades in 2016, the shares are trading at a steep valuation discount to both historic averages and the broader FTSE 250.

"Despite the valuation support, Essentra is experiencing operational challenges, which we assume will limit earnings recovery in FY17e. We do not expect near-term catalysts to emerge until the company re-defines its strategic direction under new CEO, Paul Forman, who began 1 January 2017."

At 1100 GMT, the shares were down 3.2% to 420.10p.

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Essentra Market Data

Currency UK Pounds
Share Price 411.40p
Change Today -0.80p
% Change -0.19 %
52 Week High 442.00
52 Week Low 325.40
Volume 60,393
Shares Issued 263.18m
Market Cap £1,082.71m
Beta 1.09

Essentra Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
62.71% below the market average62.71% below the market average62.71% below the market average62.71% below the market average62.71% below the market average
50.41% below the sector average50.41% below the sector average50.41% below the sector average50.41% below the sector average50.41% below the sector average
Price Trend
21.69% above the market average21.69% above the market average21.69% above the market average21.69% above the market average21.69% above the market average
11.11% above the sector average11.11% above the sector average11.11% above the sector average11.11% above the sector average11.11% above the sector average
Income
54.87% above the market average54.87% above the market average54.87% above the market average54.87% above the market average54.87% above the market average
51.16% above the sector average51.16% above the sector average51.16% above the sector average51.16% above the sector average51.16% above the sector average
Growth
67.95% below the market average67.95% below the market average67.95% below the market average67.95% below the market average67.95% below the market average
76.07% below the sector average76.07% below the sector average76.07% below the sector average76.07% below the sector average76.07% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 2
Sell 0
Strong Sell 0
Total 6
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Essentra Dividends

  Latest Previous
  Interim Final
Ex-Div 26-Sep-19 25-Apr-19
Paid 30-Oct-19 03-Jun-19
Amount 6.30p 14.40p

Trades for 18-Nov-2019

Time Volume / Share Price
14:34 299 @ 411.40p
14:34 400 @ 411.40p
14:30 2,081 @ 411.80p
14:23 89 @ 411.80p
14:22 25 @ 411.80p

Essentra Key Personnel

Chair Paul J Lester
CFO Lily Liu

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