Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineRamsdens continues to make hay as gold rallies
Ramsdens (RFX:AIM) 168.5p
Gain to date: 17.3%
Original entry point: Buy at 142p, 15 June 2017
A bullish trading update from Ramsdens (RFX:AIM) on 1 September reaffirms our belief that this a great stock. It said ‘we expect our interim and full year profit before tax to be significantly ahead of market expectations’.
This has been helped by decent foreign exchange results through the traditional peak periods of July and August aiding its offering in this area.
The sustained strong gold price has also been a boon for the company’s precious metal retail business as well as its pawnbroking activities.
Looking forward, Justin Bates, analyst at Liberum, says that Ramsdens’ competitors exiting the high street bodes well for the business, both in terms of organic and acquisitive opportunities.
This has led Bates to upgrade Ramsdens’ adjusted pre-tax profit for the year by 22% to £5.9m.
The shares are trading on 11 times 2018’s forecasted 15.3p per share of earnings based on Liberum’s estimates. The broker has also put a 190p price target on the shares, implying 12.8% upside.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
