Proactive Investors - Future PLC (LSE:LON:FUTR) was highlighted as a potential rebound candidate for 2023, investment bank JPMorgan (NYSE:JPM) believes, after its share price was one of the FTSE 350's worst performers in 2022.
Analyst Lara Simpson said there were two positive factors that underpin her positive stance.
“Management gave a reassuring outlook for 2023 highlighting high-cost agility to offset the macro impact on revenue and cost inflation,” Simpson said, covering the first.
The magazine and website publisher, which owns Go.Compare and titles ranging from FourFourTwo to Woman’s Weekly, “can grow profits in 2023”, the equity research analyst argued, “despite an uncertain consumer outlook”.
Future lost roughly two-thirds of its value last year, worsened by CEO Zillah Byng-Thorne’s informal indication of plans to step down by the end of 2023.
Byng-Thorne has been “one of the best-remunerated media executives in Britain”, following the company’s share price rocketing 13,600% from 10p to 1373p since she took control in 2014.
However, the analyst has been reassured that “strong management execution is set to remain in place” with finance director Penny Ladkin-Brand “well-regarded” and committing her immediate future to Future, with an extended role to group CFO and strategy officer.
“The backdrop of a higher interest rate environment and current share price may see cash distributions surprise on the upside next to attractive valuation relative to the sector,” Simpson concluded.