Goldman Sachs initiates coverage of the temporary power group with a “buy” rating and a target price of 1,320p, implying a 24 per cent upside. Ahead of full-year results on 22 March, the broker forecasts revenue of $208m (£134m) and earnings before interest, tax, deductions and amortisation of $107m. It also says that new hub openings in Panama and Dubai during the first half of this year will help it win contracts over the year.
JP Morgan upgrades the security group to “overweight” and increases its target price to 320p from 300p, after a management presentation from chief executive Nick Buckles. The broker sees buoyant trading in UK government contracts, emerging markets, and its North American business, which should offset any negatives from its European cash services and the loss of two UK bank contracts at the end of last year.
INTERMEDIATE CAPITAL GROUP
Citi rates the debt provider as “neutral” with a target price of 230p, following its announcement that it has sold its stake in CPA Global – the fifth largest asset on its balance sheet that was valued at £76.9m. The broker sees the exit as positive for ICG, which says it will mean a £43m capital gain and cash proceeds of around £113m from the sale. It also increases its net asset value forecast by one per cent.