Buy Relx plc (REL) by Colin Morton in MoneyWeek CLOSED

Tip Notes

On a sum-of-the-parts basis, I would value the healthcare unit on a ten times EBITDA multiple, and the distribution unit on a six times multiple. After adjusting for net cash of$24.8m, I get a value of around 245p a share. In terms of risks, the Gulf is of course a geographically volatile region. Also, government reimbursement rates are falling, and there's only a free-float of 30%, which means the founders hold most of the voting power, which could impact minority shareholders. That said, the shares are a hefty 25% discount to my fair value, and MC should benefit from the secular growth in healthcare across the UAE. Deutsche Bank has a price target of 318p.\\nPaul Hill - Moneyweek