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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.  

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