FY27 is set to be a bumper year with not one but two new Sarah J.Maas books to be released in the highly successful ACOTAR series. We have upgraded our FY27 forecasts (adj. PBT +16%) on what we consider to be sensible, mid-case assumptions with upside potential from both new book sales and backlist sales. While another Sarah J.Maas book release in itself is not unexpected, two books landing in quick succession is a nice surprise. Bloomsbury has also confirmed that FY26e is in line with market expectations. At a time when the valuation of the shares is near all-time lows, we think this is an attractive time to BUY the shares which post our upgrades trade on just 10.3x FY27e PER with a FCF yield of 8.8%. These multiples make no sense for a quality name like Bloomsbury. Our TP rises from 690p to 725p reflecting forecast changes.
