UK's RS Group rises, J.P. Morgan reinstates coverage with 'neutral' rating

RS

18/06/2024 08:32

** J.P. Morgan reinstates coverage of UK electronics
distributor RS Group  RS1R.L  with "neutral" rating and target
price of 780p
    ** Shares of RS Group rise 1.91% to 718.5p    
    ** RS Group offers a combination of manufacturing recovery
and secular growth - J.P. Morgan  
    ** Brokerage says management is focussed on improving
underlying profitability through cost saving and investing in
capabilities that could drive sales
    ** "We assume a return to organic growth in 2H25E and 6%
growth in FY26E, consistent with weighted PMIs improving to ~55"
- J.P. Morgan
    ** RS Group last month reported adjusted pretax profit 281
mln pounds ($356.79 mln) vs. IBES estimate 276.5 mln pounds
    ** Co said its financial performance reflected "weakness in
global industrial production and the unwinding of unusual
post-pandemic trading tailwinds"
    ** Stock down about 14% this year, as of last close

($1 = 0.7876 pounds)

 (Reporting by Gokul Pisharody in Bengaluru)
 ((Gokul.Pisharody@thomsonreuters.com;))