Deustche Bank ups target price for Mitie following strong results

24th Jun 2024 09:35

(Sharecast News) - Shares in facilities management and professional services company Mitie were on the rise on Monday after Deutsche Bank lifted its target price for the stock following the group's better-than-expected annual results.

Results on 6 June revealed that record revenues of £4.51bn for the year ended 31 March, up 11% year-on-year, while adjusted operating profit surged 30% to £210m.

EBITDA came in at £268m, up from £214.5m the year before, ahead of the group's own £200m target and 5% above Deutsche Bank's forecast, while free cash flow beat analysts' estimates by 3%, surging to £158m from £66m.

"With the business having made a positive start to FY25E we upgrade FY25-27E EPS by 2-5%," said analyst James Beard.

"We expect the UK General Election to have a relatively minor impact on growth in the near-term, and we do not expect a possible Labour administration to meaningfully change the public sector contracting environment."

Deutsche Bank kept a 'buy' rating on the stock, which was up 2.1% at 119.6p by 1222 BST, putting its year-to-date gains at more than 22%.