MISSION Group (LSE:TMG) drew a bullish call from Stifel, which argued the marketing group's valuation overlooks a profit recovery driven by cost cuts and agency consolidation.
The shares traded at 23.85p, up 4%, while the broker initiated coverage with a 'buy' rating and a 57p target, more than double the share price.
Behind the recovery sits a £5 million cost-saving programme, followed by £4 million of additional gross annualised savings identified through agency integration under chief executive John Carey.
With the cost base reset, Stifel forecasts adjusted operating profit above 50% higher at £8 million for financial year 2026, on broadly flat revenue of £69 million.
Alongside those operational gains, lower interest costs and normalising tax rates underpin the broker's forecast for roughly 130% growth in adjusted diluted earnings per share.
Within the agency portfolio, Mongoose provides the main revenue growth engine, with the sports and events business forecast to deliver around 9% annual growth through 2028.
Yet Stifel's valuation analysis puts the shares at roughly four times projected 2027 operating profit, a 35% discount to the wider UK marketing and communications sector.
For evidence of underlying agency values, the note points to April Six's sale for approximately £10.5 million, equivalent to around ten times the agency's operating profit.
Further disposals could be a catalyst, with Stifel arguing certain agencies might fetch at least the group's entire market value and accelerate debt reduction.
