BUY TED LN – 100% upside – Transformation plan leaving huge upside

*TED’s transformation plan has now reached such a stage that we are feeling confident that the value will be unlocked in the near future

*The name has been punished through Covid while the company has used the time to progress in its brand refresh/transformation on its core priority markets and working towards its ESG targets leaving it as a strong brand coming out of Covid

*Latest financials released last month continued to demonstrate tight cash management measures and strong growth in online sales as the company adapted to the pandemic while also keeping costs under control

-At the upcoming AGM the company is looking for shareholders’ permission for a buy back, which we see as a mark of confidence.

*Analysts are turning more positive ahead of the winter collection which we believe could be a great catalyst for the stock and an eye opener for the rest of the investment community

*As we are seeing the UK and Europe in general open up again for summer – despite some negative headlines in relation to travel which we see less relevant for the stock – we expect to see an increase in demand for the summer and winter collections

-Added to this Strategists are looking to cheap U.K. Assets for year-end gains. Only a net 1% of global investors are overweight the region vs a net 45% overweight Europe.

*Our DCF valuation comes in around 300p while our peer valuation comes in at 233p, this leaves an average 75% upside from the current levels

*Due to the volatility of the stock on the back of Covid headlines we are initiating our position while saving fire power in case of a further market sell-off

*The set up is there from a valuation, self help and general macro trend perspective. Now we just need the mkt to get onboard.

Time to initiate a position.

BUY TED