UK-based Shore Capital Stockbrokers has said that there is scope for "strong medium-term EPS growth" at forecourt retailer Applegreen, "which could build if conversion momentum builds", with "a progressive dividend income stream and healthy returns."
Shore Capital's Darren Shirley said that Applegreen "has evolved into a potent food-to-go and convenience combination."
He said that while the Irish economy has been through a difficult period in recent years, Applegreen's story "has been one of remarkably consistent delivery and progress".
The forecourt operator, he added, is "a finely tuned and effective operator where thought has been given to each and every aspect of the business to bear down on costs, deliver the strongest possible customer experience in fuel and non- fuel and so to drive cash flows from its operations."
Im the UK, where Applegreen operated 54 stores at the end of 2014, Shore Capital forecast the retailer's store count rising to around 94 by 2018, which could lead to a doubling of food revenues at the retailer's British operations.
Its ongoing trial in Long Island, in New York State, could also bear fruit, with Shore Capital anticipating ten stores in operation by the end of next year.
"In so doing, Applegreen is learning on the ground in a low-risk manner about a potentially vast opportunity for growth," said Shirley, "and, given the excellence of food to go in the USA, insights that could further bolster its distinctive and already powerful customer proposition in Ireland and the UK."
In June, Applegreen raised €70 million through an initial public offering on the Irish Stock Exchange, and commenced trading on the Enterprise Securities Market (ESM) with a market capitalisation of €300 million.
© 2015 - Checkout Magazine by Stephen Wynne-Jones
