Goldman Sachs raises Equiniti target on US expansion
Equiniti Group
179.80p
16:55 09/12/21
Analysts at Citi bumped up their target price for shares of Equiniti, hailing its acquisition of Wells Fargo Share Registration & Services.
FTSE All-Share
4,564.66
15:50 09/05/24
FTSE Small Cap
6,669.58
15:50 09/05/24
Support Services
11,036.17
15:49 09/05/24
That, the broker said, would see the firm turn into an international player, instead of being just a UK-centric outfit.
It would also help Equiniti gain access to more customers and grow its market share.
"At its core, we still think Equiniti has an attractive, growing and cash-generative business model," Goldman said.
The broker estimated that Equiniti was capable of delivering an organic compound annual rate of growth in its earnings per share of 7% between 2017 and 2020.
Together with potenial uses of excess cash, EPS CAGR might reach double digits, Goldman explained.
The analysts raised their target price from 280.0p to 320.0p, while keeping their recommendation on the shares at a 'buy'.