Suhasini Varanasi, an analyst from Goldman Sachs, has initiated a new Buy rating on Mitie Group plc (MTO).
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Suhasini Varanasi has given her Buy rating due to a combination of factors that suggest a promising outlook for Mitie Group plc. The company is expected to achieve an average organic growth rate of approximately 5% per annum from FY26 to FY30, which surpasses its historical performance. This growth is attributed to Mitie’s robust position in the UK Facilities Management Outsourcing market and significant advancements in its Projects segment.
Additionally, the recent acquisition of Marlowe is anticipated to contribute positively to Mitie’s profitability. It is projected to enhance the company’s EBITA margin by around 40 basis points annually through FY26 to FY28, supporting Mitie’s medium-term margin target of exceeding 5%. Furthermore, the stock’s appealing valuation adds to the rationale for the Buy rating, with a 12-month price target indicating a potential upside of approximately 40%.
Varanasi covers the Industrials sector, focusing on stocks such as Ashtead, Intertek, and Mitie Group plc. According to TipRanks, Varanasi has an average return of 0.9% and a 46.95% success rate on recommended stocks.
In another report released on October 28, Berenberg Bank also reiterated a Buy rating on the stock with a p210.00 price target.