Edison Issues Initiation on Marshall Motor Holdings (MMH)

LONDON, May 11, 2017 /PRNewswire/ --

As Marshall Motor (MMH) celebrates the second anniversary of its flotation on AIM, it can reflect positively on the continuation of its strong growth record, which has driven it to rank seventh among UK automotive retailing groups. The strong brand coverage and excellent relationships with major manufacturers should continue to deliver growth opportunities, despite potentially tougher market conditions. Our fair value for MMH currently stands at 214p per share.

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

MMH trades on an FY18e P/E ratio of 5.7x on our forecasts, 28% lower than the average for UK auto retailers (excluding Inchcape). We do not believe the discount is warranted by relative growth potential, which is supported by a progressive dividend policy. We believe an in line rating is more appropriate, which together with a potential unwinding of the sector's multiple contraction seen since the Brexit vote could drive a significant re-rating.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website:http://www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:

LinkedIn: http://www.linkedin.com/company/edison-investment-research

Twitter: http://www.twitter.com/Edison_Inv_Res

YouTube: http://www.youtube.com/edisonitv

Google+: https://plus.google.com/105425025202328783163/posts

For more information please contact:
Andy Chambers, Edison Investment Research, +44(0)20-3681-2525
Ali West, Edison Investment Research, +44(0)20-3077-5700, industrials@edisongroup.com