GB Group plc: Buy Rating Affirmed Amid Digital Identity Growth Potential Despite Slowed FY25 Growth

In a report released today, Charles Brennan from Jefferies maintained a Buy rating on GB Group plc (GBG – Research Report), with a price target of p350.00.

Charles Brennan has given his Buy rating due to a combination of factors that suggest potential for future growth despite current challenges. The FY25 results for GB Group plc were in line with previous announcements, showing a 3% organic growth and an adjusted EBIT of £67 million. Although these figures meet expectations, they indicate a deceleration in growth from the first half to the second half of the fiscal year.
Despite the slowdown, Brennan sees a significant opportunity for GB Group in the digital identity sector. The company’s management faces the task of bridging the gap between the current performance and the larger market potential. This potential, coupled with the company’s ability to align with consensus expectations, underpins the Buy rating as the firm is positioned to capitalize on future opportunities in the digital identity space.

According to TipRanks, Brennan is a 5-star analyst with an average return of 11.9% and a 67.38% success rate. Brennan covers the Technology sector, focusing on stocks such as SAP SE, Dassault Systemes, and Temenos.