What does MM think about John Lyng Group (JLG)?
Hi Team, Please comment on the long-term prospects of John Ling Group. Is the SPP worth taking up when it is so close to the market price? Thanks & regards, sidney
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Answer
Hi Sidney,
Construction business JLG reported a net downgrade (in our view) in June which has left the stock floundering around its 12-month lows – it didn’t read too badly with both revenue and EBITDA set to increase by +10% but the quality was questionable as we often say don’t fight the tape. We’re still not fans of this business, we still think it’s too expensive for the type of business it is.
As for the SPP priced at $5.15, its not overly exciting in our opinion being at less than a 2% discount to Fridays price, and above where the stock was trading in late June.
