Applus Services: UBS confirms buy rating
(CercleFinance.com) - UBS has confirmed its buy rating on the Spanish certification specialist, Applus Services, which saw an acceleration in growth in Q3.
The broker maintains its 12-month target price at 13.3 euros.
According to specialists, the 4.7% acceleration in organic growth in Q3 was in line with expectations. In contrast, adjusted operating income exceeded expectations. Indeed, improvement in growth at the Oil & Gas division are continuing, and this is accompanied by continuing upbeat trends in other sectors. However, according to UBS, the 150 basis point increase in the group's Q3 operating margin, in Q3, which is more than in H1 (+110 points), is "mainly due" to the accretive contribution made by acquisitions.
Applus Services has not raised its annual estimates, although the broker's note expects the consensus to rise. Overall, trends are improving, the margin rate has exceeded expectations, and the FX factors have become less unfavourable, UBS concludes.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker maintains its 12-month target price at 13.3 euros.
According to specialists, the 4.7% acceleration in organic growth in Q3 was in line with expectations. In contrast, adjusted operating income exceeded expectations. Indeed, improvement in growth at the Oil & Gas division are continuing, and this is accompanied by continuing upbeat trends in other sectors. However, according to UBS, the 150 basis point increase in the group's Q3 operating margin, in Q3, which is more than in H1 (+110 points), is "mainly due" to the accretive contribution made by acquisitions.
Applus Services has not raised its annual estimates, although the broker's note expects the consensus to rise. Overall, trends are improving, the margin rate has exceeded expectations, and the FX factors have become less unfavourable, UBS concludes.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.