In a report released today, James Wheatcroft from Jefferies maintained a Buy rating on Inchcape (INCH – Research Report), with a price target of p1,050.00.
James Wheatcroft has given his Buy rating due to a combination of factors including Inchcape’s strong free cash flow generation and attractive shareholder returns. Over the next six years, the company is expected to produce over £2.5 billion in free cash flow, which is approximately 86% of its current market capitalization.
Despite slight reductions in earnings per share estimates for the fiscal years 2025 to 2027, the stock remains undervalued with a low price-to-earnings ratio of 9.1x, an EV/EBITDA of 4.6x, and a free cash flow yield of 13.0% for FY25E. Additionally, the dividend yield is projected at 4.4%, making it an appealing investment for shareholders seeking returns.
According to TipRanks, Wheatcroft is ranked #2292 out of 9384 analysts.
In another report released on March 10, Berenberg Bank also maintained a Buy rating on the stock with a p1,120.00 price target.