Sign up Canada
Proactive Investors - Run By Investors For Investors

MITIE shares fall on Numis downgrade

In a note to clients, analysts at Numis said that MITIE’s financial year 2018 results were in line with expectations, but expectations had been reduced
mitie group
In morning trading MITIE’s shares fell 4% to 187.40p

MITIE Group PLC (LON:MTO) shares fell on Friday morning as City broker Numis downgraded its rating to ‘reduce’ from ‘hold’ with a 160p price target, saying that risk remains.

In a note to clients, analysts at Numis said that MITIE’s financial year 2018 results were in line with expectations, but expectations had been reduced through the course of financial year 2018.

READ: Full-year profits fall at Mitie but boss says outsourcer ‘where it needs to be’

The analysts said although management is confident in the transformation programme and its ability to now grow the business, they believe that risk remains.

“We believe that the recent re-rating leaves the valuation looking full and failing to appropriately discount the risk that remains with the elevated levels of average net debt,” the analysts concluded.

In morning trading MITIE’s shares fell 4% to 187.40p.  

View full MTO profile View Profile

Related Articles

Picture of Malaysian city
May 09 2018
The group’s ability to provide benefits to the retail sector was demonstrated in 2017.
Enertopia Corp's partner GWT upbeat on potential of lithium recovery tests
October 25 2017
The feedstock used in the tests comes from the group's Clayton valley project in Nevada
Hong Kong
April 16 2018
More than three-quarters of the portfolio that Harmony Capital inherited has now been either restructured or sold.
Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use