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Prices & Quotes - UK Markets - Coats Group (COA)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 61.40p
Change Today:
-1.60p
Market Cap:
891.88m
Sector:
Financial Services

Jefferies starts Coats at 'buy' thanks to focus on sustainability

By Alexander Bueso

Date: Tuesday 24 Aug 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Jefferies started coverage of Coats at buy telling clients that the company's "attractive" suite of sustainable products should see it further bolster its position as market leader.
As well, they judged that the thread manufacturer's above-trend revenue growth and the potential for a recovery in margins meant its approximately 40% discount to the sector was too "severe".

Key to their investment thesis, Coats, which supplies the fashion industry, had an early-mover advantage, having already spent years working on corporate sustainability.

A case in point, its margins in Apparel and Footwear had already recovered to above pre-Covid levels, because customers were willing to pay a premium for Coats's products based on recycled or bio-degradable materials.

There were also positive drivers in place in its other divisions, which all told Jefferies said would see Coats clock in with organic revenue growth of 3.8% between 2022-24, up from the 2.2% pace seen between 2014-19.

In parallel, Coats's Performance Materials division was expected to exit 2022 with margins of approximately 10.5%.

Despite all of the above, the forward price-to-earnings multiple for Coats's shares was at a 50% discount to the sector, the analysts highlighted.

Looking at the enterprise value-to-earnings before interest, taxes and amortisation multiple, that was at 39% discount.

Hence, Jefferies set a 97.0p target price for the shares, which would see them trade on an EV/EBITA multiple of 12.4 times or a 22% discount relative to the sector "which is more in line with pre-Covid levels".

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Coats Group Market Data

Currency UK Pounds
Price 61.40p
Change Today -1.60p
52 Week High 79.80p
52 Week Low 56.00p
Volume 3,685,617
Shares Issued 1,452.57m
Market Cap 891.88m
Beta 0.78

Performance Indicators

Compare performance with the sector and the market.

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Price Trend
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Income
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Growth
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Price Chg 6m
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P/E
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PEG
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sector
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Dividend Yield
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EPS Growth
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Operating Margin
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sector
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What The Brokers Say

Strong Buy 5
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 5
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Coats Group Dividends

  Latest Previous
  Interim Final
Ex-Div 21-Oct-21 29-Apr-21
Paid 16-Nov-21 25-May-21
Amount 0.61¢ 1.30¢

Trades for 30-Nov-2021

Time Volume / Share Price
16:59 114,784 @ 61.40p
16:55 22,870 @ 61.40p
16:51 25,659 @ 61.40p
16:50 114,784 @ 61.40p
16:47 8,792 @ 61.40p

Coats Group Key Personnel

Chair David Gosnell
CFO Jackie Callaway