Intertek Group Share News (ITRK)

Numis Securities has reiterated its 'buy' rating for Intertek despite the testing and quality control firm missing estimates with its 2013 results, saying that it remained upbeat about long-term structural growth prospects and returns potential.Pre-tax profits totalled £314.9m last year, up 2.1% year-on-year but slightly below the expected range of £317-326m. Organic growth slowed to 2% in the second half from 6% in the first."While 2013 results were impacted by a slowdown in growth in the second half, management provided a more optimistic scenario for recovery progression in 2014," said analysts Steve Woolf and Mike Murphy. "Combined with a strong balance sheet and a slightly more upbeat view on accessing currently restricted parts of the Chinese market, the outlook is more encouraging."The analysts said that Intertek should be assisted by progressively easier year-on-year comparatives in 2014. Nevertheless, a modest margin improvement, foreign exchange headwinds and lower-than-expected organic growth has led to a small reduction in their profit forecasts this year. They expect the company to make £336m in pre-tax profit, down from their previous estimate of £346m.The stock trades at 21 times Numis' revised earnings estimates for 2014, "reflecting its high organic growth, high return on invested capital, and strong balance sheet". "Following a period of relative underperformance, we believe there is scope to return to positive momentum as the end-markets start to strengthen," Woolf and Murphy said.Numis has a 3,782p target price for the stock.Shares were trading 1.3% higher at 3,083p by 12:36 on Wednesday.BC