Edison Issues Outlook on Ultra Electronics Holdings (ULE)

LONDON, September 13, 2016 /PRNewswire/ --

Ultra Electronics is in a replenishment phase, investing in new technologies to embed in programmes that should return the company to growth from FY17. In the current year the spending environment remains flat, but FX and M&A contributions will bolster performance, enabling the company to deliver EPS in excess of 2011's record level. Our fair value of 2,037p indicates decent upside for the shares should improve order intake and continuing investment deliver expected growth.

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Our estimated fair value for Ultra currently stands at 2,037p, a simple average of our FY17 peer-based sum-of-the-parts and our capped DCF valuation. If Ultra continues to grow EPS in 2017 beyond the range of the last five years, and global defence spending does indeed start to accelerate as western world budgets increase, we feel a moderate rerating is plausible.

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All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com.

About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

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For more information please contact:

Andy Chambers, Edison Investment Research, +44(0)20-3681-2525
Roger Johnston, Edison Investment Research, +44(0)20-3077-5722, [email protected]

SOURCE Edison Investment Research

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