Brokers were gushing in their praise of Bloomsbury Publishing PLC after another strong set of interim numbers.
Investec, which has a price target of 370p, said it was still “undervalued” following the company’s record profit and revenue growth.
“The interim results once again demonstrate the impressive virtuous flywheel in place at Bloomsbury.
“Investment in high-quality content supports robust and growing demand from customers – this then leads to strong cash generation which facilitates further investment in content.”
Meanwhile, another broker, Peel Hunt set its target price to 385p.
“The first half saw retailers drag forward demand, resulting in a very strong performance, [along with] active management is for the moment protecting the company from the worst impacts of the supply chain pressures.
“The cash asset could easily find further investment in stock to offset the supply issues if necessary.
“Bloomsbury is showing its structure and prudent management is working to investors’ advantage.
“Yet again Bloomsbury’s diversity is protecting investors,” said Peel Hunt.
Numis increased its target price to 400p from 386p, explaining that in the six months (to 31 August) “profit [was] roughly double our forecast in a seasonally small trading period and boosted by phasing given supply chain concerns.”
Shares rose 4.3% to 367p.