Analyst Sam Dindol of Stifel Nicolaus maintained a Buy rating on Mitie Group plc (MTO – Research Report), boosting the price target to p155.00.
Sam Dindol’s rating is based on Mitie Group plc’s strong financial performance and strategic initiatives. The company reported a significant increase in revenue for FY25E, driven by a 9% year-over-year growth in the fourth quarter. This growth was attributed to high demand for projects and was further supported by both organic and inorganic growth factors. The company’s ability to offset business investments and recover from losses in its telecoms projects business, which returned to breakeven, also contributed to the positive outlook.
Additionally, Mitie secured a record total contract value of £7 billion in wins, renewals, and extensions, including a major security services contract with the Department for Work and Pensions. The company also demonstrated strong free cash flow generation, exceeding its guidance, and announced an additional £125 million share buyback for FY26E. These factors, combined with a compelling valuation and a robust order book, underpin the Buy rating, as the company is well-positioned to continue delivering value to shareholders through strategic options and cash returns.