EDISON INVESTMENT RESEARCH LIMITED (LON:KEFI) Edison issues initiation on Dar Global (DAR): More luxury brand retailer than housebuilder
Transparency directive : regulatory news
|
Edison Investment Research Limited
London, UK, 2 November 2023
Edison issues initiation on Dar Global (DAR): More luxury brand retailer than housebuilder Dar Global is a developer of premium-priced luxury branded residences, led by a management team with a track record of successful long-term delivery. It employs a ‘capital-light’ business model that reduces risk and allows for rapid scalability. It is in the early stages of delivering over 5,700 residences in the Middle East and Europe, with an ambition to expand the portfolio in number and geography. It also intends to develop a hospitality portfolio. We anticipate that Dar Global will generate a return on equity in the high teens and we value the company on a multiple of shareholders’ funds basis at c US$930m (US$5.17/share), implying c 40% upside. Dar Global remains in the early stages of its development, although management has a long and successful track record in the space. It targets a 15% return on investment in Gulf Cooperation Council (GCC) countries and 12% elsewhere, but we believe it should generate a return on equity in the high teens by FY24 and FY25, which justifies valuing the company on a multiple of 1.5x estimated shareholders’ funds. Taking our forecast FY25 shareholders’ equity values the group at c US$930m versus a current market capitalisation of US$662m, therefore implying c 40% upside. Further upside could be justified.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, 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. For more information, please contact Edison: Andy Murphy +44 (0)20 3077 5700 industrials@edisongroup.com Natalya Davies +44 (0)20 3077 5700 industrials@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1764059 02-Nov-2023