THG (THG – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Andrew Wade from Jefferies maintained a Buy rating on the stock and has a p75.00 price target.
Andrew Wade’s rating is based on several strategic financial maneuvers by THG that have strengthened its financial position. The company has successfully completed a £90 million fundraising, with a significant £60 million contribution from its CEO and Founder, Matthew Moulding. This move, along with a proposed refinancing plan, is set to remove over £200 million of gross debt from THG’s balance sheet and extend debt maturity dates to December 2029.
These actions are expected to significantly reduce THG’s leverage and interest costs, which Wade views positively. The refinancing plan includes reducing and extending the maturity of a substantial term loan, repaying another, and extending the maturity of a revolving credit facility. These steps are designed to provide THG with a more attractive and simplified long-term capital structure, offering a solid foundation for the company’s growth in its Nutrition and Beauty sectors. Wade is encouraged by the CEO’s demonstrable support and the company’s ability to maintain a clean balance sheet, which underpins his Buy rating.
According to TipRanks, Wade is ranked #4047 out of 9386 analysts.
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