Sales directly through Amazon, confirmed today, should see it benefit from the leverage afforded by the distribution network, particularly in the US.
A partnership with Neon Management, in late-stage negotiations. should also enable the beauty products group to tap into new demographics that should benefit its core Skinny Tan and Charles + Lee brands and improve margins.
“We leave target price unchanged at 90p, based on EV/Sales multiples and supported by per group comparisons,” said the house broker.
Revenues in 2021 are expected to be no less than GBP10.2mln with adjusted losses of GBP1.5mln.
“At our target price of 90p the stock would trade on a 2022 EV/sales multiple of c.1.9x (times), implying an enterprise value of c.GBP22mln, and still at a discount to suggested peers trading on a median EV/sales multiple of 2.5x.”