Market's view on Ricardo
Published on April 2024
- Ricardo supports the launch of the UK Clearing House for sustainable aviation fuels.
- Cranfield University receives a £69m boost for its ‘Hydrogen Hub’.
- Stock Watchers discuss Ricardo’s sluggish areas but acknowledge a generally positive company presentation.
- Upcoming Q2 results presentation announced with CEO and CFO as presenters.
- Six brokers covering Ricardo set an average price target around £6.
- Liberum analyses Ricardo, highlighting a potential to double operating profit by FY27, noting a strong order book especially in Defense, E&E, and Rail, while expecting profitability in Emerging A&I by year-end despite a current loss, and predicts Established A&I to break even.
- Liberum upgrades their price target for Ricardo to 725p, indicating potential undervaluation.
- Dividend increase by 13% endorsed by a Stock Watcher.
- Disappointment expressed over a significant shareholder selling down their holdings despite a positive trading update; concerns about transparency in company guidance.
- Ricardo’s defense business and environmental consulting viewed as strong, despite complexities in financial reports and diverse business segments.
- Discussion on Ricardo’s undervaluation and potential for acquisition at a premium, speculate on strategic shifts towards clearer business identity and possible interest from larger consultancies as acquirers.
- Skepticism expressed about the possibility of a high buyout price, considering current stock performance and market conditions.
- Mixed views on the potential for private equity or trade sale, with some Stock Watchers believing in substantial value creation through strategic acquisitions and sales.