Jefferies International gave a boost to G4S PLC (LON:GFS) today, upgrading its rating for the support services firm to ‘buy’ from ‘hold’ citing valuation grounds.
The US broker also raised its price target for the FTSE 100-listed firm to 330p from 270p, with the stock changing hands in morning trade at 291p, up 10p or 3.6% on last night’s close.
READ: Rise in half-year profits and revenues not enough for G4S as investors worry over emerging markets growth
In a note to clients, Jefferies analysts said: “The shares have underperformed due to disappointing Q2 organic revenue growth but momentum should recover in H118E driven by improving emerging markets and US wage inflation.”
They added: “G4S’s PE looks increasingly cheap relative to history and Securitas, particularly as the gap between adjusted and reported EPS has narrowed. “