Greeting cards manufacturer Moonpig Group PLC (LSE:MOON) shares are down over 70% since listing in 2021 but there is a “lot to like,” according to analysts ahead of the company’s full-year results on Thursday.
Liberum noted that the broker has about 70% of the online greetings’ cards market and a 25% EBITDA margin with some £50mln of free cash per year.
However, the broker says there are some “clear risks” and it favours Card Factory (LSE:CARD) where it sees ongoing recovery and growth offering a much greater upside for the UK’s market leader.
Investors will certainly be looking at any potential news on growth, given Moonpig was recently sent a 'sad you're leaving' card by the FTSE 250 following the reshuffle that took place at the start of this month.
Last year, Moonpig warned that trading had become more challenging throughout October and November.
As a result, the group said in its previous update that full-year sales are expected to be around £320mln compared to £350mln.