7th May 2015 10:59
LONDON (Alliance News) - Liberum reiterates its Buy rating for NCC Group PLC and leaves its 250 pence price target unchanged, although it has increased its revenue estimates to incorporate its acquisition of Accumuli PLC in March.
Liberum has increased its revenue estimates for the financial year 2016 and 2017 by 20% each, although it has conservatively increased its earnings per share estimates by only 1% in 2016 and 2% in 2017.
"NCC?s core business continues to deliver predictable growth. We have added the recently acquired Accumuli business to our estimates but take a prudent approach on margin," Liberum says.
Liberum says continued growth in NCC's core business and lower losses in its Domain Services business means it estimates a 21% compound annual growth rate in earnings per share between 2015 and 2017.
NCC provided an update on its trading for the eleven months to end-April on Wednesday, saying revenue had risen 15% in the period, and reiterated its expectations for the full year.
Shares in NCC are trading down 0.1% at 209.25 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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