viewCello Health PLC

Cello Health fair value around 151p per share suggests broker

The 23% fall in the shares since February’s highs, appears to overly discount for the actual reality of this disruption,

Cello Health PLC -

Cello Health PLC (LON:CLL) would be fairly valued at around 151p per share following today’s trading update, according to broker Cenkos.

The marketing group is steadily navigating the current coronavirus uncertainties and reassured that trading is the current year is robust, said the broker.

“The 23% fall in the shares since February’s highs, appears to overly discount for the actual reality of this disruption,” it added.

Today’s update also confirmed Cello maintains a “solid” net cash position.

Prior to the pandemic, Cello traded at a forward P/E of 16 times, a rating that is merited according to Cenkos and implies a price of 151p if results in 2020 are similar to the previous year.

The company’s statement today said bookings visibility and new project win rate had been maintained, with the performance of the US arm of the business “particularly robust”.

Cello said the Connect business had performed well in its first quarter of inclusion in the group’s health segment, adding that the division was currently supporting “a number of clients with [coronavirus] related UK and European public health campaigns as well as with US regulatory approvals and FDA filings”.

"Considering the disrupted circumstances in which the group is operating, the board is confident about performance for the second quarter for the Cello Health division, and therefore for the first half of 2020”, the company said.

Looking forward, Cello said it Signal business, which comprised around 16% of net revenues for the first quarter, was likely to see its performance impacted by “more significant [coronavirus] related work delays and cancellations than the Health division” and that action had been taken to reduce costs including salary reductions and furloughing.

Shares rose 4% to 119p.

Quick facts: Cello Health PLC

Price: 113 GBX

Market: AIM
Market Cap: £120.56 m


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Cello Health PLC named herein, including the promotion by the Company of Cello Health PLC in any Content on the Site, the Company receives from...



Cello Health PLC running 'remarkably well' since going completely virtual

Cello Health PLC's (LON:CLL) Mark Scott tells Proactive's Andrew Scott they're coping well since first going completely remote and virtual. ''It's a lot of people, a thousand people, and we've done that successfully, all operating well and we've maintained a large number of global...

on 7/4/20

2 min read