Download full report with analyst certification and important disclosures
Oct 9 2020, 06:45 IST/BST
2020 has provided clear evidence of Applegreen’s cash generative business model, exiting August with a better balance sheet than at December 2019 despite severe lockdown disruptions. Notwithstanding the resilience of the balance sheet and earnings, the share remains down 41% year-to-date. Comparable US convenience retailing peers are up on average 12%. We believe this huge performance disparity now leaves the equity potentially mispriced by c.100%. Yes, liquidity is low. Yes, headline leverage looks high (although not as high as you likely think). We encourage investors to ‘do the work’. We think the upside is worth it.
Oct 9 2020, 06:45 IST/BST