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Berenberg slashes target price on 'mispriced' Future

By Iain Gilbert

Date: Thursday 19 May 2022

Berenberg slashes target price on 'mispriced' Future

(Sharecast News) - Analysts at Berenberg slashed their target price on media company Future from 5,225.0p to 3,600.0p on Thursday, stating it was currently "a mispriced share".
Berenberg said despite modestly upgrading guidance at its interim results, Future's shares fell by roughly 6% on Wednesday.

While the analysts acknowledged that both weakening consumer sentiment and rising inflation present risks, they believe Future's results prove the growing value of its platform - which leaves it better positioned than peers to absorb these headwinds.

The German bank, which reiterated its 'buy' rating on the stock, continues to expect Future to at least deliver on full-year guidance in 2022 and also considers the shares to be "materially undervalued" on 11.7x P/E and a 9% FCF yield, almost 40% below its five-year average valuation.

However, Berenberg lowered its price target on the stock to reflect lower peer multiples and the removal of its upside scenario weighting given macro headwinds.

"Our new price target implies a FY 2022 P/E of 20x, in line with Future's five-year average multiple."



Reporting by Iain Gilbert at Sharecast.com

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