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Feb 28 2020, 17:20 GMT
Even in the absence of a take-out — the probability and likely price of which are difficult to estimate but do provide upside in any case — we see good risk-reward in Avation’s shares. The underlying business continues to grow and, while coronavirus is an obvious concern, the company has no lessees in mainland China. In our view, this is not reflected in its valuation of 0.80x price/book.