Serco Group (SRP)

Sector:

Support

Index:

FTSE 250

175.10p
   
  • Change Today:
    -2.30p
  • 52 Week High: 193.10
  • 52 Week Low: 143.00
  • Currency: UK Pounds
  • Shares Issued: 1,038.42m
  • Volume: 7,864,471
  • Market Cap: £1,818.28m
  • RiskGrade: 174

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 175.10p
Change Today -2.30p
% Change -1.30 %
52 Week High 193.10
52 Week Low 143.00
Volume 7,864,471
Shares Issued 1,038.42m
Market Cap £1,818.28m
RiskGrade 174

Serco Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
77.04% below the market average77.04% below the market average77.04% below the market average77.04% below the market average77.04% below the market average
51.11% below the sector average51.11% below the sector average51.11% below the sector average51.11% below the sector average51.11% below the sector average
Price Trend
30.02% above the market average30.02% above the market average30.02% above the market average30.02% above the market average30.02% above the market average
7.07% above the sector average7.07% above the sector average7.07% above the sector average7.07% above the sector average7.07% above the sector average
Income
39.49% below the market average39.49% below the market average39.49% below the market average39.49% below the market average39.49% below the market average
18.64% below the sector average18.64% below the sector average18.64% below the sector average18.64% below the sector average18.64% below the sector average
Growth
4.39% above the market average4.39% above the market average4.39% above the market average4.39% above the market average4.39% above the market average
Sector averageSector averageSector averageSector averageSector 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 31-Oct-2024

Time Volume / Share Price
16:58 499 @ 176.31p
16:58 10,840 @ 176.31p
16:58 5,023 @ 176.31p
16:58 9,833 @ 176.31p
16:58 876 @ 176.31p

Serco Key Personnel

CEO Mark Irwin

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