This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
The company’s May trading update suggested Q1 trading in-line with the Full year outlook given in March, expecting growth to accelerate in the second half of the year. New contract sales of £500m year-to-date vs. £1.4bn for the whole of 2017. Making progress on revenue growth and improved productivity.
Consensus is bullish with 66% of brokers suggesting Buy, and only 5% advocating Sell. The consensus 12-month target of 311p is well above our short-term objective of revisiting Jan highs of 294p (best since last Aug), while 76% of broker targets suggest upside from current levels.
Risks to the GFS share price include, but are not restricted to, disappointing financial results which markets may react to badly, anything that impacts profits forecasts, an economic recession that reduces the need for outsourcing, a bout of aggressive profit taking, corporate difficulties (accounting, legal) and brokers downgrading their rating and/or profit forecasts.
Next Event: Half-year results, 8 Aug; Ex-div, end-Aug
Latest Broker 12-Month Consensus: 66% Buy, 28% Hold, 5% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 2.3 | 4.3 | 8.2 | 11.2 | -14.8 | 50.4 | -2.5 | 10.6 | 16.5 |
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