C&C Group (CCR.L), mcap=£755m, price £1.92 vs £1.96

Pitch:
– UK cider and beer manufacturer that transformed business after the acquisition of UK beverage distributor.
– Significant recovery was evidenced in the UK, with CCR market share gains.
– The new CEO is well positioned to drive growth and shareholder value.
– Strong balance sheet and cash generation supporting significant capital return.
– Share price already discounts GFC-like recession and full inflation impact.

Valuation:
– Expected to fully recover sales/profitability in FY23.
– At 13x FY24 EBIT (+35% above pre-covid levels) would be £5.3 stock.
– At 13x FY26 EBIT, would be £8 stock.

Exp. gain: +170% to £5.3/share in two years.

Full $CCR.L write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/Candamp%3BC_Group/6669850795

Published on: July 21, 2022  •  Published by:
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