Market's view on Nichols plc
Published on April 2024
- Nichols plc has introduced updates across its brand portfolio including Levi Roots, SLUSH PUPPiE, and Vimto.
- The ‘No Added Sugar’ Vimto drink was recalled due to it containing added sugar.
- Stock watchers discuss the potential overhang in the Nichols market despite good business updates and strong cash flow.
- Some speculation exists about persistent selling due to either a previous merger of fund management companies or a Nichols family member reducing their holding.
- Nichols’ price target was raised by HSBC to 1,350 pence with a ‘buy’ recommendation.
- Expectations exist for Ramadan to boost sales as it usually does.
- There is anticipation regarding the upcoming Annual General Meeting (AGM) for updates on the management’s plans to review the capital structure and possibly return excess cash to shareholders.
- It’s suggested that the company should consider using its £67M in cash for an accretive bolt-on acquisition or give a special dividend.
- The stock price fluctuation is noted with indications of selling at lower prices and buying at slightly higher prices.
- Concerns are voiced about the company’s share options awarded to executives, perceived as overly generous with no conditions other than continued employment.