Serco Group (SRP)

Sector:

Support

Index:

FTSE 250

156.90p
   
  • Change Today:
      0.90p
  • 52 Week High: 193.10
  • 52 Week Low: 154.40
  • Currency: UK Pounds
  • Shares Issued: 1,024.81m
  • Volume: 55,711
  • Market Cap: £1,607.93m
  • RiskGrade: 174
  • Beta: 1.04

JPMorgan reinstates coverage on Serco at 'overweight'

By Michele Maatouk

Date: Monday 05 Aug 2024

LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove reinstated coverage on Serco on Monday with an 'overweight' rating and a target price of 215p.

The bank said its analysis suggests that Serco can generate double-digit earnings per share growth in the medium term.

"Firstly, Serco's revenue growth (target 4-6%) is largely acyclical, given the exclusive focus on government customers," it said.

"Serco's strategy has been to expand further into attractive target markets, with a particular emphasis on US defence (deepening the current Navy focus and winning work elsewhere, e.g., with the Air Force/Space Force) as well as US civilian Federal services.

"Second, we see scope for margins to improve further, chiefly due to an improving mix (higher US exposure) and also due to a greater focus on contract profitability management (a key priority for this management team as evidenced in the 1H24 results).

"Third, Serco can continue to utilise its FCF for M&A and buybacks."

Citi said it used a discounted cash flow to derive its target price, but also considered a sum-of-the-parts approach that suggests Serco's current valuation does not give the stock full credit for its US defence exposure, giving circa 30% upside potential.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Serco Market Data

Currency UK Pounds
Share Price 156.90p
Change Today 0.90p
% Change 0.58 %
52 Week High 193.10
52 Week Low 154.40
Volume 55,711
Shares Issued 1,024.81m
Market Cap £1,607.93m
Beta 1.04
RiskGrade 174

Serco Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
58.03% below the market average58.03% below the market average58.03% below the market average58.03% below the market average58.03% below the market average
23.6% below the sector average23.6% below the sector average23.6% below the sector average23.6% below the sector average23.6% below the sector average
Price Trend
14.1% below the market average14.1% below the market average14.1% below the market average14.1% below the market average14.1% below the market average
20% below the sector average20% below the sector average20% below the sector average20% below the sector average20% below the sector average
Income
12.04% below the market average12.04% below the market average12.04% below the market average12.04% below the market average12.04% below the market average
8.47% above the sector average8.47% above the sector average8.47% above the sector average8.47% above the sector average8.47% above the sector average
Growth
3.34% above the market average3.34% above the market average3.34% above the market average3.34% above the market average3.34% above the market average
3.23% above the sector average3.23% above the sector average3.23% above the sector average3.23% above the sector average3.23% above the sector average

What The Brokers Say

Strong Buy 6
Buy 3
Neutral 2
Sell 0
Strong Sell 0
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Serco Dividends

  Latest Previous
  Interim Final
Ex-Div 29-Aug-24 18-Apr-24
Paid 04-Oct-24 10-May-24
Amount 1.34p 2.27p

Trades for 22-Nov-2024

Time Volume / Share Price
08:16 63 @ 156.90p
08:16 63 @ 156.90p
08:16 176 @ 156.90p
08:14 17 @ 156.70p
08:14 193 @ 156.60p

Serco Key Personnel

CEO Mark Irwin

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