Link to the research report on Speedy Hire (LON:SDY) is here: https://www.equitydevelopment....
During a period of less favourable market conditions, Speedy Hire has taken a progressive approach to strategic business improvement and this programme is gathering momentum. As a result, we consider it to be much more than a cyclical recovery story.
Having traded at or below its 34p per share NAV for much of calendar 2023, Speedy’s share price broke through this level in the last month and has since sustained this momentum. It is now up c.14% YTD (versus c.3% for the FTSE All-Share Index).
On our estimates, Speedy is trading on low conventional forward multiples, particularly so by FY27, and that is before factoring in more ambitious company goals. With a 6.8% dividend yield, Speedy shares offer both income and growth. Taking a simple average of selected peer group multiples and our hybrid DCF/JV approach gives a mid-point fair value of 51.1p per share for the company which is c.34% above the current share price.
