RS Group jumped 5.5% to 638.5p after JPMorgan upgraded the electricals and industrial supplies distributor to Overweight from Neutral, making it one of the bank’s preferred names going into 2026.
The upgrade sits at the centre of a broader call from JPMorgan, which argues that next year should offer “something for everyone” across the business services sector.
The bank says consensus forecasts now look sensible, with expectations anchored around modest organic growth and gradual margin improvement rather than any sharp rebound.
It adds that balance sheets across the industry are “largely underleveraged” after a quiet year for takeovers, leaving companies better placed to pursue acquisitions or invest in growth.
Valuations are another pillar of the more upbeat stance, with many shares still trading below long-term averages. That has created what JPMorgan believes is a more attractive opportunity for those willing to look beyond the softer patches of 2025.
Alongside RS Group’s upgrade, the bank has reinstated coverage of Experian PLC (LSE:EXPN) with an 'overweight' rating and placed it on its Analyst Focus List, while Serco Group PLC (LSE:SRP) returns to coverage with a 'neutral' recommendation.
JPMorgan’s top picks for the year ahead include a mix of quality growth and turnaround stories, highlighting Experian, Rentokil, Verisure and RS Group as standout names.