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Zotefoams Plc

Canaccord Genuity Reiterates BUY recommendation for Zotefoams plc

Analysts at Canaccord have issued a new note reiterating their BUY recommendation and raising their price target to 620p.

Canaccord believes Zotefoams continues to be highly attractively placed. They see the decision by the group to push ahead with a new central European plant is likely to be one element of a broader roll-out strategy, with the superior qualities of the foam continuing to attract strong customer interest and good pricing. Canaccord’s price target is now based on 12.0x 2020E EV/EBITDA (was 13.5x 19E, ie. effectively rolled forward), which they believe is appropriate for a high-growth business.

 

Zotefoams plc manufactures cross-linked polyethylene block foams. The Company’s foam has a wide range of applications in the sports and leisure, commercial packaging, toys, building, military, marine and medical markets. Zotefoams produces foam in the UK, which it sells throughout Europe and North America.

 

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.