By Michele Maatouk
Date: Wednesday 14 Feb 2024
LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets initiated coverage of discoverIE on Wednesday with a 'sector perform' rating and 760 price target, as it said the growth outlook remains strong, but less differentiated.
RBC noted that discoverIE has been built in its current form by M&A since 2011.
"Acquisitions remain a key strategic plank, though increased group scale may bring challenges," it said.
"The group also has a robust organic growth track record at around 2x our UK coverage average since 2013."
The bank said continued strong organic growth is forecast - 5.5% CAGR to 2028E - but accelerated peer group growth (+4.5% CAGR) means this is less differentiated.