Last checked at 12 Dec 2016 14:16
EQS-News: Edison Investment Research Limited / Key word(s): Forecast/ResultsForecastEdison Investment Research Limited: Edison issues update on Cohort (CHRT) 12-Dec-2016 / 15:15 GMT/BST --------------------------------------------------------------------------- London, UK, 12 December 2016 Edison issues update on Cohort (CHRT) Cohort has delivered solid profit growth in H117; this performance isexpected to strengthen in the second half. The mix of profitability andreducing minorities has led us to increase our FY18 forecasts by 6% at theEPS level. The progressive dividend policy provides immediate benefit toinvestors, but the capital progress should also remain attractive. Theshares have performed well in recent months, aided by a healthy rerating ofpeer defence stocks; as a result, our fair value has risen to 485p,supported by the improved cash flow valuation. The strong performance of EID and MCL means the minorities act as a drag onearnings this year. As these should be more fully consolidated in FY18 EPS,we think that is a more realistic base to assess Cohort's progress. The mixof organic growth, healthy margins, rising free cash flow and dividendprogression compares favourably to UK defence peers, implying the modest P/E premium that our fair value calculation of 485p (up from 439p previously)indicates is plausible. Click here to view the full report. All reports published by Edison are available to download free of chargefrom its websitewww.edisoninvestmentresearch.com About Edison: Edison is an international equity research firm with a teamof over 70 analysts, investment and roadshow professionals and works withboth large and smaller capitalised companies, blue chip institutionalinvestors, wealth managers, private equity and corporate finance houses tosupport their capital markets activity. Edison provides services to morethan 420 retained corporate and investor clients from offices in London,New York, Frankfurt, Sydney and Wellington. Edison is authorised andregulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investmentadvice. Edison's reports are not solicitations to buy or sell anysecurities. Contact details: Learn more at www.edisongroup.com and connect with Edisonon: LinkedIn www.linkedin.com/company/edison-investment-researchTwitter www.twitter.com/Edison_Inv_ResYouTube www.youtube.com/edisonitv London New York Sydney Frankfurt+44 (0)20 3077 +1 646 653 +61 (0)2 9258 +49 (0)69 78 8076 9605700 7026 1161 Schumannstrasse280 High 245 Park Level 25 Aurora 34bHolborn Avenue, 39th Place Floor 88 Philip Street 60325 FrankfurtLondon,WC1V 7EE New York, NY Sydney NSW 2000 Germany 10167United Kingdom US Australia --------------------------------------------------------------------------- Dissemination of a UK FINANCIAL NEWS, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- End of Announcement - EQS News Service 528999 12-Dec-2016corporate-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.