ERGOMED PLC (FRA:GB00BN7Z) Edison Investment Research Limited: Edison issues initiation on Ergomed (ERGO)

Transparency directive : regulatory news

25/03/2020 13:43

Edison Investment Research Limited
Edison Investment Research Limited: Edison issues initiation on Ergomed (ERGO)

25-March-2020 / 12:43 GMT/BST


 

London, UK, 25 March 2019

Edison issues initiation on Ergomed (ERGO)

We are initiating coverage on specialist pharmaceutical services provider Ergomed. We believe it should prove relatively resilient during the COVID-19 crisis and has the fundamentals in place to execute its growth strategy. Ergomed announced impressive audited numbers for FY19, with revenue up 26% to £68.3m and EBITDA up 5.5x to £12.5m. The FY19 announcement is effectively Ergomed's fourth profit upgrade for FY19 and a small beat on recently reset FY19 expectations. Ergomed trades at a discounted EV/EBITDA of 10.1x vs the contract research outsourcing (CRO) sector average of 11.5x (FY20). We value Ergomed at £186m or 399p/share. Ergomed's strong organic growth is benefiting from a clear strategic focus on high growth pharma sectors, margin control and order book growth (up 15% to £125m in FY19, giving 90% visibility to 2020).

 

We value Ergomed on an EV/EBITDA multiple based on our FY20 forecasts using a FY20e sector average ratio of 11.5x. We believe Ergomed's strengthened management, focus on growing segments (oncology, orphan drugs and pharmacovigilance) and potential resilience in responding to the coronavirus crisis support our valuation.  


Click here to view the full report.

 

Subscribe to Edison's content to receive reports by email.

All reports published by Edison are free-to-access and available on the 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:

Dr Jonas Peciulis, +44 (0)20 3077 5728

Dr Susie Jana, +44 (0)20 3077 5700

healthcare@edisongroup.com

 

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-group-

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv



Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


End of Announcement - EQS News Service

1006621  25-March-2020 

fncls.ssp?fn=show_t_gif&application_id=1006621&application_name=news&site_id=symex

25/03/2020 13:43
27/06/2016 08:03
30/03/2016 13:00

ERGOMED PLC's latest news


25/03/2020 13:43
27/06/2016 08:03
30/03/2016 13:00


Other stories

01/04/2020 05:21
01/04/2020 06:26
01/04/2020 05:47
31/03/2020 23:12
01/04/2020 07:21
31/03/2020 19:25
31/03/2020 15:15
31/03/2020 23:44
01/04/2020 02:39
01/04/2020 03:40
31/03/2020 22:09
01/04/2020 05:20
01/04/2020 02:41
31/03/2020 20:22
01/04/2020 00:32
31/03/2020 20:13
31/03/2020 22:00
31/03/2020 16:08
01/04/2020 05:20
31/03/2020 20:30
31/03/2020 18:21
31/03/2020 19:29
01/04/2020 06:41
01/04/2020 01:49
01/04/2020 07:34
01/04/2020 02:31
31/03/2020 23:43
31/03/2020 17:17
31/03/2020 19:45
31/03/2020 14:22
31/03/2020 07:03
30/03/2020 13:33
31/03/2020 13:00
31/03/2020 22:29
31/03/2020 20:45
01/04/2020 01:20
01/04/2020 02:56
31/03/2020 23:55