810p?1 Feb 2021 09:57
Analyst Calum Battersby reiterated his ‘buy’ recommendation and 810p target price on the stock, which closed up 0.6%, or 3.5p, at 599p on Friday.
‘We believe 2021 will be a year of significant value creation for the company. We acknowledge clear catalysts, in the form of a synergy update around March or April, and a significant recovery in organic growth in the second half of 2021,’ he said.
Battersby added there was an ‘excellent valuation opportunity’ as the shares trade below long-run average multiples even before synergy upgrades from its acquisition of SDL.
‘We recognise that there is a highly attractive investment case for RWS, which we expect to drive significant outperformance over the next year,’ he said.
Exceeds my target but has given the SP a lift today. Very undervalued.