ANALYST VIEWS: WHAT WOULD A SALE OF SYNOVATE MEAN FOR AEGIS?
STEVE LIECHTI | INVESTEC
We see Synovate as a decent add-on to existing players rather than a strategically exciting asset, therefore
while an auction might develop, we would not encourage this view. Bigger questions are what Aegis does with any possible proceeds or whether this stimulates interest in the whole group by third parties, bearing in mind the Bolloré stake.
ALEX DEGROOTE | PANMURE GORDON
We increase our target price to 190p, from 175p. News of a potential Synovate transaction at £500m is a positive catalyst. This is materially ahead of our own valuation. There could also be upside pressure to the £500m estimate if other players are interested. We reiterate our “buy” stance.
LORNA TILBIAN | NUMIS
We remain firm buyers of Aegis, which has a target price of 174p. It is trading on a 2011 price to earnings ratio of 12.8 times, falling to 11.6 times in 2012, attracted by its recent strong winning streak in the US (which includes Disney Parks, Home Depot and Diageo) and its high and fast growing exposure to both digital and emerging markets.