On The Beach Group (OTB)

Sector:

Tourism and Leisure Services

Index:

FTSE Small Cap

264.50p
   
  • Change Today:
    -2.00p
  • 52 Week High: 499.40
  • 52 Week Low: 140.00
  • Currency: UK Pounds
  • Shares Issued: 157.36m
  • Volume: 209,280
  • Market Cap: £416.22m

Berenberg raises price target for On the Beach

By Iain Gilbert

Date: Monday 06 Jan 2020

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg upped their target price on shares of UK-based travel retailer On the Beach from 480.0p to 540.0p on Monday, stating the shuttering of Thomas Cook last September had presented the group with "a significant opportunity" to achieve a step-change in market share.
Berenberg said the precise shape of OTB's upward trajectory remained "unclear" while prices for flights to many beach destinations remained high.

OTB management took the decision to increase marketing spend following the failure of Thomas Cook and while it suggested in December that traffic to the site had increased, conversions had fallen.

The German bank thinks that increasing marketing spend was the right approach, as flight prices should eventually normalise, and OTB should be left front-of-mind for consumers making bookings, but warned that this could well leave earnings with "a peculiar shape" in 2020.

However, despite the potential for short-term volatility, Berenberg still believes OTB "looks attractive" and raised its outer-year earnings estimates as it rolled forward its valuation on the group.

"In our view, management has a solid track record of scaling the business (both organically and via M&A), managing risk factors and innovating to create new areas of growth," said Berenberg.

"EBITDA has already doubled since the IPO in 2015, and with a significant market opportunity ahead, combined with a sizeable net cash position, we back management to achieve much more in the coming years."

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.

 

OTB Market Data

Currency UK Pounds
Share Price 264.50p
Change Today -2.00p
% Change -0.75 %
52 Week High 499.40
52 Week Low 140.00
Volume 209,280
Shares Issued 157.36m
Market Cap £416.22m

OTB Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
73.36% below the market average73.36% below the market average73.36% below the market average73.36% below the market average73.36% below the market average
80% below the sector average80% below the sector average80% below the sector average80% below the sector average80% below the sector average
Price Trend
68.86% below the market average68.86% below the market average68.86% below the market average68.86% below the market average68.86% below the market average
23.29% below the sector average23.29% below the sector average23.29% below the sector average23.29% below the sector average23.29% below the sector average
Income
57.24% below the market average57.24% below the market average57.24% below the market average57.24% below the market average57.24% below the market average
51.11% below the sector average51.11% below the sector average51.11% below the sector average51.11% below the sector average51.11% below the sector average
Growth
31.95% above the market average31.95% above the market average31.95% above the market average31.95% above the market average31.95% above the market average
88.41% above the sector average88.41% above the sector average88.41% above the sector average88.41% above the sector average88.41% above the sector average

What The Brokers Say

Strong Buy 7
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 8
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

OTB Dividends

  Latest Previous
  Final Interim
Ex-Div 09-Jan-20 30-May-19
Paid 13-Feb-20 28-Jun-19
Amount 2.00p 1.30p

Trades for 10-Jul-2020

Time Volume / Share Price
17:13 16,205 @ 264.96p
16:35 54,515 @ 264.50p
16:29 128 @ 265.00p
16:28 516 @ 266.50p
16:28 509 @ 265.00p

OTB Key Personnel

CEO Simon Cooper

Top of Page