Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...

Insider bought/maiden bought: A director bought/maiden bought 40,000 s...

A director at Powerflute Oyj bought/maiden bought 40,000 shares at 54p and the significance rating of the trade was 68/100. 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 ...

Update: Strong performance

In a busy year for Powerflute, Corenso was successfully integrated and reported, with Savon Sellu, a strong trading performance. This was also reflected in cash flow with a 40% reduction in net debt to €37m. Powerflute retains financial flexibility to continue to invest in its businesses, further expand its portfolio and fund a healthy and growing dividend.

Flash note: Potential offer in the wings

In twin announcements, Powerflute has indicated that management expectations are for FY15 EBITDA in the €53-55m range and the company has received a preliminary proposal of a potential offer for the company. The offer is subject to further due diligence, among other things, and there is no certainty that an offer will be made. We have withdrawn our estimates pending further announcements on this matter.

Update: Powering ahead

Powerflute is successfully integrating Corenso and, at the same time, driving improvements in Savon Sellu’s performance. We upgrade estimates again following H115 results and there is momentum for a good second half performance. Unsurprisingly, the share price is well ahead so far this year but, with further operational gains to come, further progress remains a possibility.

Update: Further upgrade

A positive trading update prompts us to raise FY15 estimates for the third time this year and by almost 10% at the EBITDA level. Both of Powerflute’s businesses are contributing to this momentum. H115 results, which are expected to be announced on 8 September, and further detail here may also facilitate upgrades to subsequent years.

Update: Robust earnings and integration focus

Good momentum in Packaging Papers is being supplemented by a maiden full year contribution in the new Coreboard & Cores division in FY15. Trading in both divisions is reported to be robust and we have increased PBT estimates by 20% for FY15 and 17% for FY16 since FY14 results. The integration of Corenso is likely to be a dominant theme this year and we believe this business can potentially drive higher earnings in due course.

Update: Positive earnings impact from Corenso deal

We are reinstating our earnings estimates c 45% above the pre-Corenso deal level. As well as scale, Corenso brings a new product stream, a well-invested, integrated manufacturing base and an established international profile. Powerflute’s share price has performed well, but further gains are possible, especially if acquisition benefits come through more strongly.

Institutional Comment: Daily comment