Analyst Research Report Snapshot


Charles Stanley: Dialight (Buy)




Charles Stanley Securities


05 Mar 2014





Companies referenced:


Available for Immediate Download

Time to act? Recent results were very much as expected, concluding a year that had once been expected to deliver a normalised PBT of £25m. Reasons for the material shortfall are well known and the resulting requirement for caution is reflected in both our and consensus forecasts. However, our sum of the parts analysis now shows the Lighting Division to be trading on prospective PERs of 26.1x, 18.1x and 13.6x. These numbers are based on relatively modest revenue growth rates compared to those of the recent past. Much of the rest of the Group now looks to be an unwelcome distraction and we see pressure mounting for management to focus the Group solely on its high growth industrial and hazardous LED markets, to the benefit of the valuation. In the meantime, the search for a new finance director continues and the Group awaits potentially material new business in its re-configured Obstruction Signal Lighting business. We maintain our Buy recommendation and have raised our price target to 1050p. This reflects the strong growth potential, the still minimal penetration of industrial LEDs, together with Dialight's leading products and market position. We believe it is a good time for management and investors to act.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.