London, UK, 16 August 2017
Edison issues outlook on paragon (PGN)
Following a visit to paragon's expanded Delbrück facility and the successful EUR50m bond issue, we have revisited and upwardly revised our medium-term growth and margin outlook for the group. With 2016 results having met forecasts despite some timing headwinds and future years underpinned by substantial contract wins across the electromobility division, we believe paragon is on the cusp of further accelerated growth. With proceeds from both the October 2016 capital increase and June 2017 bond issue being invested to support this accelerated growth, we raise our fair value to EUR82.1/share based on our updated DCF scenarios.
Following full year results, continued strength in H117 and our site visit, we have reassessed the medium-term outlook potential for the group and lifted our mid- to long-term forecasts. As a result, our DCF-based fair value has increased to EUR82.1/share (EUR40.1/share in October 2016) to reflect our increased confidence in paragon's ability to turn significant top-line growth into bottom-line profit. An indication of the benefit of the automated line showing through in results is likely to act as a catalyst to another re-rating.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information please contact Edison:
Roger Johnston, +44 (0)20 3077 5722
Learn more at www.edisongroup.com and connect with Edison on:
Dissemination of a UK FINANCIAL NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.