Analyst Jacob Armstrong from Stifel Nicolaus maintained a Buy rating on XPS Pensions Group Plc (XPS – Research Report) and increased the price target to p460.00 from p430.00.
Jacob Armstrong has given his Buy rating due to a combination of factors that highlight the strategic and financial benefits of XPS Pensions Group Plc’s recent acquisition of Polaris Actuaries & Consultants. The acquisition is expected to be immediately earnings enhancing, with projected increases in adjusted EPS for FY26E and FY27E by 6.5% and 6.7% respectively. This transaction allows XPS to expand its capabilities in the insurance consulting market, which is highly fragmented and offers significant growth potential.
Armstrong notes that the acquisition will enable XPS to provide a comprehensive range of services, from strategic consultancy to project implementation, leveraging Polaris’s established relationships with major UK insurers. Despite the valuation appearing relatively full, Armstrong sees further upside potential from ongoing earnings upgrades driven by client wins, regulatory changes, and additional project opportunities. The company’s financial position remains strong, with significant headroom against its debt facilities, supporting the Buy rating and an increased price target of 460p.
In another report released yesterday, Deutsche Bank also maintained a Buy rating on the stock with a £4.85 price target.