In a report released yesterday, David Farrell from Jefferies maintained a Hold rating on Redde Northgate (ZIG – Research Report), with a price target of p320.00.
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David Farrell’s rating is based on a combination of factors including Redde Northgate’s consistent performance in slightly exceeding market expectations and the positive developments in its Claims & Services division. Despite the challenges faced in the first half of FY25 due to a cyber-security incident, the company has shown resilience, particularly with the improvement seen in the latter half of the year.
Additionally, the strong demand for rental products in Spain and the UK & Ireland, along with strategic investments in fleet expansion, have contributed to the company’s steady growth. However, the Hold rating suggests that while the company is performing well, the potential for significant upside may be limited at this time, warranting a cautious approach for investors.