On a positive note Goldman Sachs have price target of $24 after this report.
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EBITDA of US$624m was well ahead of forecasts of US$539m, with the beat driven by a c.US$100m higher revenue figure than forecast (driven higher by product credit revenue). Interim dividend of US7.5cps was in line with forecasts and reflects the strong cash generation of the group.
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The results were solid and reflect the quality asset portfolio of NCM. However, there was nothing in the numbers to get us incrementally positive and with the stock trading in line with our view of fair value, we retain our Neutral.
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We are Neutral-rated on NCM. Our 12-month A$24.00 target price is based on a 50:50 split of NPV and EV/EBITDA methodology (8.0x CY18E).
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NCM Price at posting:
$23.05 Sentiment: Buy Disclosure: Held
