RBC Capital has launched coverage of Mitie Group PLC (LSE:MTO) with an 'outperform' and a 195p price target, arguing that the outsourcing group has quietly built one of the strongest defensive stories in UK support services.
RBC’s case centres on scale, strategy and timing. Mitie’s push into technology-driven facilities management and compliance has locked it onto several structural growth trends, from energy transition to estate digitisation, and that is now showing up in the numbers.
The group’s £33bn pipeline, feeding a £16.5bn order book, has expanded about 45% since the launch of its 2025–27 plan.
The bank sees Mitie delivering 11% earnings growth on a two-year CAGR and around 5% a year in shareholder returns, putting its forecasts at the top end of consensus.
For RBC, the message is simple: this is a business with momentum, visibility and well-calibrated exposure to public and private spending cycles.
The shares opened strongly, but tracked back in parity.