GFS.L Share News (GFS)

(ShareCast News) - G4S shares rose on Tuesday as RBC Capital Markets reiterated an 'outperform' rating and lifted the target price to 310p from 280p, citing higher medium-term cash flow forecasts."As the group deleverages and starts to demonstrate cash flow improvements, we see significant scope for a re-rating, as the market focuses on the strong market positions and high organic growth potential of the group," RBC said.The broker expects free cash flow rising 65% over a four-year period. The group is trading on a free cash flow yield of 11% for 2020, more than double the sector average for 2017.RBS believes the security services company is well positioned in an industry that is set to grow at more than 6% per year through to 2023. G4S also has "strong market positions" in the US, the UK and emerging markets, which accounts for 40% of sales and 50% of profits."G4S, unlike many of its peers, can provide all facets of security from consulting to guarding to electronic security," RBC said."We forecast average organic growth of 5.2% per annum over the next three years. In the short term, we see security growth remaining strong with terrorism threats, migration, increased border controls and the uncertain political environment all helping."Shares rose 2.23% to 257.10p at 1512 GMT.