Jul 24th 2012 - Edison Investment Research today published a report on Cupid (CUP.L, LSE:CUP, LON:CUP) entitled "C'est L'amour". In summary, the report says:
Cupid has extended its reach in France through the €3.7m purchase of a well-established online dating company, with brands in traditional, serious and casual dating, paying 0.6x historic sales, 6.2x historic EBITDA. Our forecast nevertheless is for cash of £10.9m at end FY12, allowing plenty of scope for further deals. The purchase fits well with the strategy of continuing geographic expansion in Cupid’s ‘New Markets’ (including USA, Canada and France) and should be earnings neutral in FY12; enhancing in FY13. With forecast earnings growth of over 30% per year over these two years, the prospective P/E is now falling rapidly.
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