Macro Analysis /
United Kingdom

GB : Strategy - Mind the Gap

    Joachim Klement
    Joachim Klement

    Analyst - Strategy, Accounting, and Sustainability (SAS)

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    David Mak
    David Mak

    Analyst - Strategy, Accounting, and Sustainability (SAS)

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    CGS-CIMB
    31 March 2021
    Published byCGS-CIMB

    The narrative, particularly in the UK, has shifted from imposing to easing Covid-related social restrictions. Our analysis shows equity analysts slashed price targets in the months immediately after lockdown implementation. If and when lifted, this required clarity may spur an equally swift upward revision of fair value estimates. We present the stocks that would seem to most need a boost to ‘street’ sentiment. Trading at such high premiums to their consensus fair value estimates, either the street is missing something or a pullback is overdue.