Stifel Nicolaus analyst Peter McNally maintained a Buy rating on Science (SAG – Research Report) today and set a price target of p620.00.
Peter McNally has given his Buy rating due to a combination of factors including Science Group’s strong financial performance and strategic initiatives. The company’s results have slightly exceeded expectations, with adjusted basic EPS increasing by 9%, indicating robust earnings growth. Despite challenging market conditions, the Systems divisions have shown significant improvement, contributing to profit growth and offsetting declines in the Consulting division.
Additionally, Science Group has demonstrated strong cash generation, ending the year with substantial gross cash and net funds. This financial flexibility, along with a raised share buy-back program and maintained dividend, underscores the company’s solid capital allocation strategy. The valuation appears attractive, with shares trading at a low multiple relative to its operating history, supporting McNally’s optimistic target price and Buy rating.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SAG in relation to earlier this year.