Fishing Republic (FISH:AIM) 44.5p

Gain to date: 14.1%

Original entry point: Buy at 39p, 18 May 2017

Our bullish call on Fishing Republic (FISH:AIM) is 14.1% in the money and we believe it could go higher, particularly as it will soon have a rival business on the stock market.

That could help raise interest in the sector and encourage investors to take a deeper look at Fishing Republic and its growth potential.

Angling Direct is scheduled to join AIM on 13 July, valued at £27.4m. In comparison, Fishing Republic is valued at £16.8m.

Angling Direct is the UK’s largest specialist fishing tackle retailer, trading via 15 stores and its own website. It has raised £7.4m of new money to further its store roll-out and boost online sales.

Fishing Republic’s full year results (24 Apr) showed 32% growth in profit before tax to £403,000 on sales up 41% to £5.8m, with higher margin own website sales growing fast.

SHARES SAYS: Given its debt free balance sheet, Fishing Republic is in a strong position to fund further growth. Northland Capital remains a buyer with a 53p price target implying 19.1% upside. (JC)

BROKER SAYS: 1 BUY

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