Moonpig Group PLC (LSE:MOON) delivered "cracking" full-year earnings slightly ahead of expectations, prompting two brokers to reiterate 'buy' ratings.
Jefferies argued investor concerns over slowing growth are already reflected in the share price.
Panmure Liberum said the shares trade on a 9% free cash flow yield is "crazy cheap for incredibly high quality and such a strong cash returns profile".
The online greetings card and gifts retailer reported adjusted EBITDA of £104.6 million and pre-tax profit of £76.5 million for the 2026 financial year. This was slightly ahead of Jefferies' forecasts, but around £3 million of the earnings beat reflected lower share-based payment charges following a chief executive transition, leaving the underlying performance broadly in line with expectations.
"No surprises," said Panmure, as revenue rose 6.5% to £373 million, with Moonpig's core business growing 8.6% and Dutch subsidiary Greetz returning to stronger momentum. The Experiences division remained weaker, with revenue falling 4.5%.
Orders increased 2% and average order value rose 6%, although Jefferies highlighted a slower gift attachment rate during the second half and noted that growth in the core Moonpig business eased as previously flagged.
Looking ahead, the company said trading since the start of the new financial year had been in line with expectations and guidance was unchanged.
While Moonpig has lowered its medium-term revenue growth ambition to the mid-to-high single digits from double-digit growth previously, Jefferies said the market had already priced in the change.
The broker continues to forecast double-digit medium-term earnings per share growth and maintained its 315p price target, implying more than 40% upside from current levels. Panmure's 300p target was also maintained.
