Sam Dindol, an analyst from Stifel Nicolaus, maintained the Buy rating on RS Group PLC. The associated price target is p735.00.
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Sam Dindol has given his Buy rating due to a combination of factors including the RS Group PLC’s strategic initiatives and financial performance. The company has shown resilience in its trading performance, particularly in the Americas and Asia Pacific regions, despite softer PMIs in EMEA. This resilience is attributed to the execution of its strategic action plan, which includes significant digital platform upgrades and operational consolidations.
Furthermore, the stock is currently trading at a one-year forward EV/EBITDA of approximately 8.8x, representing a 20% discount compared to its 10-year average. This valuation, combined with the potential for stabilizing and improving trading trends, supports the positive outlook. The company’s commitment to achieving its strategic objectives, as outlined in the September 2024 Capital Markets Day, further reinforces the Buy recommendation.
In another report released on July 7, Barclays also maintained a Buy rating on the stock with a £8.70 price target.