reports
- Robin Byde
AB Dynamics (ABDP LN) - BUY from HOLD: back in the driving seat - BUY
We upgrade AB Dynamics (ABD) with the risk-return trade-off now looking more favourable. Full year earnings last week were in line with our expectations and cash conversion has been strong. The earnings outlook is cautiously positive, and the Autos sector backdrop appears more benign. ABD’s valuation is more attractive, and the large net cash balance of c. £40m can be deployed to accelerate growth. In previous cycles, lower cash generation by the OEMs has led to cuts to R&D spend, the key driver...
- Robin Byde
AB Dynamics (ABDP LN) - HOLD from SELL: downside risks priced-in - HOL...
We downgraded AB Dynamics (ABD) to SELL in March citing the acute disruption faced by global autos OEMs and associated technology companies, from well reported macroeconomic and geopolitical issues. We said a share price of c. £19 and forward PE of >25x was unjustified given these headwinds. The share price has now adjusted, and ABD has soothed investor concerns with a cautiously positive pre close update issued last week for the year to 31 August (FY25E). Revenue will be slightly lower than we ...
- Robin Byde
Audio Note: AB Dynamics - Excellent company, horrid macro backdrop - S...
In this audio note, Zeus’ Robin Byde reports back from ABDP’s well attended and impressive CMD last week. He is worried that the company’s strong fundamentals are not entirely de-coupled from the challenges facing global autos OEMs.
AB Dynamics: 1 director
A director at AB Dynamics sold 45,000 shares at 1,747p and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showin...
- Robin Byde
AB Dynamics (ABDP LN) - Sector headwinds stiffen - SELL
Global autos OEMs and associated technology companies are facing stiffening headwinds as tariffs bite. Last week US tariffs were extended and further retaliations are likely: Tariffs On Imports of Autos & Parts into the USA. We believe ABD is not immune. The positive attributes of ABD are well-rehearsed, and, for housekeeping, we apply minor upgrades to our FY25E estimates following the recent trading update. But it is time to look at the big picture and consider whether the Group is too highly ...
- Robin Byde
AB Dynamics (ABDP LN) - A haven in a troubled sector
Put mildly the global automotive sector is troubled. The list of challenges is long: stuttering ICE/EV transition, digitalisation, micro mobility car replacement in big cities, lacklustre end-demand, labour disputes, OEM consolidation, social policy and geopolitics. ABD is a haven, offering market-leading testing technology locked into long-cycle, propulsion agnostic, R&D spend by the OEMs; and shielded by regulatory vehicle safety testing requirements. The balance sheet is strong, with c.£30m o...
- Andy Hanson
- Carl Smith
- Robin Byde
Industrials Round-up - 08 July 2024
The UK industrial sector continues to strengthen with June output and order books increasing for a second consecutive month, albeit at a slightly slower pace than in May. We think it is too soon to declare conclusively a turnaround, but recent industrial and economic data have been reassuring, as inflation returned to the BoE’s 2% target and sentiment remained positive.
- Andy Hanson
- Carl Smith
- Robin Byde
Zeus Industrials Round-Up - 11 June 2024
As we approach the end of H1, recent industrial and economic indicators display an encouraging picture, cautiously supporting optimism for the latter half of 2024. UK manufacturing returned to growth in May, with many countries recording higher PMI readings. Inflation data across the globe was also encouraging, prompting the Bank of Canada and ECB to cut interest rates last week. UK GDP growth for Q1 was also positive and overall business confidence appears to have improved.
- Robin Byde
AB Dynamics (ABDP LN) - Strategy on track but valuation full
Playing a bit of catch up, we lift our estimates for the recent acquisition of Venshure Test Services (VTS) and positive interim earnings. Cash generation and the net cash position remain healthy, and the outlook for earnings growth is generally positive.
Hybridan Small Cap Feast - 28 Feb 24
28th February 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obj...
- Robin Byde
- Bob Liao
Audio Note: B90 Holdings - H1: Repositioning to scale
In this audio note, Zeus’ Bob Liao summarises the investment case for B90 Holdings. H1 was a period of investment and restructuring that has positioned the company for strong future growth. Listen to the audio note below, and read the full research here.
- Robin Byde
- Liberum Research Team
- Liberum Research Team
- Alex O’Hanlon
- Joe Brent
- Sanjay Vidyarthi
LIBERUM: AB Dynamics - Strong H1 margin performance
AB Dynamics delivered strong H1 operating profit growth of 37% (14% organic). Stripping out the Ansible acquisition and ABD Solutions losses, we estimate an underlying operating margin improvement of c. 80bps, driven by a healthy gross margin and operating leverage. The order book gives good visibility on H2 and management’s expectations for FY23E are unchanged. We think there could be modest upside risk to forecasts by the y/e. Market trends remains strongly positive, product innovation continu...
- Liberum Research Team
LIBERUM: Analyst Best Ideas - Most & Least Preferred Ideas from Liberu...
Liberum's research coverage encompasses more than 300 stocks across 12 pillars. Each quarter we ask our sector teams to list their most and least preferred stocks on a six to 12-month time horizon. Stock selection is largely limited to those names listed in the FTSE 350 and STOXX 600, eliminating less liquid names, and is driven by analysts’ preferences, rather than total shareholder return.
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- Liberum Research Team
- Liberum Research Team
- Alex O’Hanlon
- Joe Brent
- Sanjay Vidyarthi
LIBERUM: AB Dynamics - H1 in line, no change to forecasts
AB Dynamics’ brief H1 update states that trading is in line and there is no change to FY23E expectations. There are no numbers in the statement. We think that there has been some continued lumpiness to order intake, but overall momentum is encouraging. The Ansible integration is progressing well and ABD Solutions continues to gain traction. We make no changes to our forecasts. We maintain our view that growth in ADAS markets should support strong growth at AB Dynamics allowing it to leverage th...
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