On The Beach Group (OTB)

Sector:

Tourism and Leisure Services

Index:

FTSE Small Cap

192.80p
   
  • Change Today:
      7.80p
  • 52 Week High: 499.40
  • 52 Week Low: 140.00
  • Currency: UK Pounds
  • Shares Issued: 131.22m
  • Volume: 412,833
  • Market Cap: £252.99m

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."

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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 192.80p
Change Today 7.80p
% Change 4.22 %
52 Week High 499.40
52 Week Low 140.00
Volume 412,833
Shares Issued 131.22m
Market Cap £252.99m

OTB Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
84.87% below the market average84.87% below the market average84.87% below the market average84.87% below the market average84.87% below the market average
88.73% below the sector average88.73% below the sector average88.73% below the sector average88.73% below the sector average88.73% below the sector average
Price Trend
67.91% below the market average67.91% below the market average67.91% below the market average67.91% below the market average67.91% below the market average
25.33% below the sector average25.33% below the sector average25.33% below the sector average25.33% below the sector average25.33% below the sector average
Income
78.07% below the market average78.07% below the market average78.07% below the market average78.07% below the market average78.07% below the market average
55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average
Growth
21.58% above the market average21.58% above the market average21.58% above the market average21.58% above the market average21.58% above the market average
85.92% above the sector average85.92% above the sector average85.92% above the sector average85.92% above the sector average85.92% above the sector average

What The Brokers Say

Strong Buy 7
Buy 0
Neutral 0
Sell 0
Strong Sell 1
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 03-Apr-2020

Time Volume / Share Price
16:35 17,077 @ 192.80p
16:29 189 @ 190.40p
16:29 12 @ 188.40p
16:29 16 @ 190.40p
16:29 877 @ 188.80p

OTB Key Personnel

CEO Simon Cooper

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