Kepler raises ISS as focus on shareholder returns is clear

Iss A/S

21/02/2025 11:02

** Kepler Cheuvreux upgrades ISS  ISS.CO  to "buy" from
"hold", citing the Danish services provider's focus on
shareholder returns
    ** The broker says the proposed DKK 2.5 billion share
buyback programme beat expectations, hence, the broker sees EPS
rising by 12-13%
    ** "It is clear that management is now focused on
shareholder returns, while also remaining committed to its
leverage target of 2.0-2.5x net debt/EBITDA, returning all of
the 2025 FCF expected to shareholders and potentially with more
to come," according to the brokerage
    ** Kepler raises target price by 34% to DKK 195 assuming the
company will re-lever through buybacks to at least 2x net
debt/EBITDA
    ** Out of 12 analysts that cover ISS, six rate it "strong
buy" or "buy", four rate it "hold", and two rate "sell"

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))