In a note on Monday, the broker forecast that the media group, which operates the BRICKLIVE events brand, would deliver an underlying pre-tax profit of £200,000 in its current financial year, which would then rise to £1.7mln in 2020 and £3.6mln in 2021.
Analysts also said that a recent deal with children’s TV network Nickelodeon, announced last week, was “transformational” for the Company and would allow it to benefit commercially from leasing assets built using Nickelodeon’s intellectual properties (IPs) while also potentially opening the door to more IP deals with other major content partners.
Shard added that the market fundamentals for the group’s BRICKLIVE shows were “strong” with leisure spending showing historic long-term growth in addition to higher levels of disposable income from emerging economies which was fuelling the wider travel and leisure sectors.
Shard’s valuation has given a one-year range for Live Company of between 73p and 89p per share, which suggested “limited downside risk” alongside strong potential to outperform as newsflow underpinned its longer-term growth prospects.
In lunchtime trading on Tuesday, Live Company shares were down 7.2% at 51.5p, a nearly 73% discount to the top-end of Shard’s valuation.