Analysts at Berenberg slashed their target price on promotional merchandise outfit 4imprint from 7,365.0p to 6,775.0p on Wednesday following the group's FY24 results.
Source: Sharecast
Berenberg noted that thanks to 4imprint's strong cash position, its board recommended a $70.0m special dividend, which will bring FY25 cash returns to $138.0m on its estimates.
However, due to a cautious outlook statement, Berenberg conservatively reduced its target price and FY25 earnings per share forecasts by 9%.
"We remain confident in the long-term equity story and note that periods of macro uncertainty have historically provided excellent buying opportunities in 4imprint's shares," said the German bank, which reiterated its 'buy' rating on the stock.
Berenberg added that 4imprint's shares trade on a FY25 price-to-earnings ratio of 16.1x and a free cash flow yield of 6.1% – versus 10-year historical averages of 21.0x and 4%, respectively – as investors price in the impact of newly announced tariffs on the business.
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