Serco Group (SRP)

Sector:

Support

Index:

FTSE 250

156.60p
   
  • Change Today:
      0.60p
  • 52 Week High: 193.10p
  • 52 Week Low: 154.40p
  • Currency: UK Pounds
  • Shares Issued: 1,024.81m
  • Volume: 55,199
  • Market Cap: £1,604.85m
  • RiskGrade: 174
  • Beta: 1.04

RBC hails "underappreciated" growth potential at Serco

By Benjamin Chiou

Date: Tuesday 20 Aug 2024

LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets has reiterated its 'outperform' call on Serco Group, saying the essential public services providers' strong execution and prospects are currently "underappreciated" by the market.
In an in-depth research report published on Tuesday, RBC highlighted Serco's "robust drivers" across and diverse business mix, where addressable markets remain large with "significant room for growth".

"Top down drivers remain strong given high public debt levels, political change, geopolitics, increased focus on matters beyond price and capability in bids and the increased use of technology. Key markets like Defence, Immigration and Health all have current structural growth drivers," the broker said.

Meanwhile, the company's business in the North American defence market has been a "major success story" over the past five years, but is overlooked by the market, it added.

"The shares have been lacklustre, despite strong financial delivery, and we believe SRP is now materially undervalued. [...] In an uncertain world and an expensive overall Business Services sector, we believe Serco warrants attention," RBC said.

The broker kept a 230p target price for the stock, which was trading 1% higher at 173.60p on Tuesday morning.

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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 156.60p
Change Today 0.60p
% Change 0.38 %
52 Week High 193.10p
52 Week Low 154.40p
Volume 55,199
Shares Issued 1,024.81m
Market Cap £1,604.85m
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
08:12 769 @ 156.60p
08:12 769 @ 156.60p
08:12 382 @ 156.60p
08:12 44 @ 156.60p
08:12 846 @ 156.60p

Serco Key Personnel

CEO Mark Irwin

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