SigmaRoc (SRC) has received a new Buy rating, initiated by Stifel Nicolaus analyst, Charlie Campbell.
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Charlie Campbell has given his Buy rating due to a combination of factors that highlight SigmaRoc’s strong financial outlook and strategic opportunities. The company’s recent Capital Markets Day (CMD) showcased its ability to generate and grow resilient cash flows, supported by diverse end-markets and a track record of improving acquired companies. This has led to an upgrade in earnings estimates and an increase in the price target from 114p to 125p.
Additionally, SigmaRoc’s strategic plans to deploy around £500 million in free cash flow over the next five years without the need for further equity issuance demonstrate its disciplined approach to mergers and acquisitions. The potential for significant EBITDA growth by 2030, coupled with exposure to positive macroeconomic factors such as German fiscal expansion and potential reconstruction efforts in Ukraine, further supports the Buy rating. These elements collectively suggest a promising investment case with the potential for substantial share price appreciation.
According to TipRanks, Campbell is an analyst with an average return of -4.5% and a 47.37% success rate.