Future PLC (LON:FUTR), the FTSE 250 online publisher in the cross-hairs of the short-sellers, provided an “encouraging” rebuttal to its detractors at a strategy update last week, according to City broker Peel Hunt.
Its analysts said the company “gave colour” on its strategy of delivering strong organic growth supplemented by acquisitions.
READ: Future says full year to be “materially ahead” of expectations
“We left feeling encouraged that Future’s platform is getting stronger, which will support the delivery of multiple years of revenue and profit growth,” they added.
Peel Hunt’s media team emerged from last Thursday’s capital markets day with its ‘buy’ recommendation intact along with its 1,975p price target. The shares – changing hand for 1,182.36p – are currently trading at a 40% discount to that valuation.
Earlier this month hedge fund ShadowFall launched an attack on Future, accusing the media group of making a series of poor-quality acquisitions that had masked a weak organic growth rate.
The publisher was quick to respond as it told investors just a day later that its full-year results would be “materially ahead” of market expectations thanks to “strong momentum” four months into the financial year.
Peel Hunt was left “impressed” by Future’s strategy and direction.
“The capital markets day gave us confidence that Future’s strong platform allows it to scale its business and support growth for multiple years to come,” the broker said.
“We were encouraged by the many opportunities to expand the business in the next few years.”