Communisis Plc (CMS)
ISR viewConsiderable achievements over the last three years are currently being masked by earnings weakness prompted by recessionary pressure but we are confident that, once uncertainty over the impact of the recession on earnings is removed, the shares will start to reflect these successes.
Confident for the full year
Communisis Plc | Download | Published on 02/11/2010Communisis issued its Q3 IMS yesterday which reinforced the view that the company’s financial performance continues to improve. Trading is said to be in line with expectations and management is confident of meeting full year expectations. Accordingly, we have made no changes to our estimates. Having recovered from their lows earlier in the year, Communisis shares have since been steady at the higher levels. However, with the shares still trading on a meagre 3.6x EV/EBITDA, we see further re-rating potential which may be accompanied by renewed upgrade momentum as we move into 2011.