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A travel stock with a potential 50% upside

This cash-rich provider of smart technology is priced on 11 times earnings, even though it's winning multiple contracts
February 12, 2024
  • Order intake up 11 per cent to £30mn
  • Net cash materially ahead of expectations
  • Strong momentum in new financial year
  • 12 per cent EPS growth forecast in 2024

Journeo (JNEO:257p), a transport systems provider, has more than doubled revenue to £46mn, quadruped pre-tax profit to £3.9mn and doubled earnings per share (EPS) to 20.6p in its 2023 financial year.

That’s in line with house broker Cavendish’s upgraded forecasts at the end of last year and represents 18 per cent outperformance of earnings expectations in the market when I initiated coverage when the share price was (‘Alpha Research: The cheap small-cap thriving on transport spending’, 16 June 2023).

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