LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity nudged up their target price on diversified financials firm Equals Group from 99.0p to 106.0p on Wednesday following a "positive trading update" from the company.
Canaccord stated that the early start to Equals' 2022 calendar year was said to have continued the "positive trend" that gathered pace during 2021 and appears that investments made to reposition the business towards a more business-to-business offering was "proving successful".

As a result, the Canadian bank increased 2021 revenue forecasts for Equals by 3%, in line with the guidance in the statement and, consequently, now sees earnings per share and revenue estimates upgraded by 8%.

"We note the comments regarding increased sales and marketing spend but on balance see upside risk to our new CY22E forecasts," said Canaccord, which also reiterated its 'buy' rating on the stock.

"With respect to valuation, we maintain the same methodology used in our prior work, ie we make reference to what we consider to be the closest peer to EQLS (AlphaFX), and apply a 20% discount to its FY22E PE multiple."

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