RWS is a 'significant opportunity, says Berenberg12 Jun 2026 07:32
There is a 'significant opportunity' for investors to pick up RWS at a low valuation, says Berenberg.
Analyst James Bayliss retained his 'buy' recommendation and target price of 170p on the artificial intelligence (Al)-enabled intellectual property services provider, which was trading down 12% at 90p on Thursday following first half results.
It reported strong trading momentum and strategic progress, including revenue growth driving a 33% increase in adjusted pre-tax profit but investors were concerned about the outlook for the group.
However, Bayliss said the group's 'rediscovered strategic focus is paying dividends, with Al-related products now accounting for 32% of group revenue'.
'Looking ahead, trading for the second half has been in line with expectations and, absent the impact of FX, management has reiterated its full-year guidance,' he said.
'In the context of just 3.9 times full-year 2026 enterprise value/Ebitda, underpinned by a 7.5% dividend yield, there is a significant opportunity for investors here.