RBC Capital Increases Mobico Group PLC Price Target to GBP0.70 Amid Financial Forecast Adjustments
In a recent update, RBC Capital raised its price target for Mobico Group PLC (MCG:LN) shares to GBP0.70 from GBP0.65, maintaining a Sector Perform rating. The adjustment comes after a reassessment of the company's financial projections and valuation metrics.
RBC Capital has revised its EBIT forecast for Mobico Group in 2024 to GBP195.5 million, down 2% from previous estimates but within the company's guidance range. The firm also lowered its EPS expectations for the period from 2024 to 2026 by approximately 6%, citing anticipated higher interest expenses.
Despite these adjustments, RBC Capital has increased the price target for Mobico Group due to reduced provisions in the SOTP valuation and lower government bond yields impacting the WACC calculation. However, the analyst noted that there may be better investment opportunities in other stocks within the sector.
In summary, RBC Capital's updated stance on Mobico Group suggests that the stock is currently fairly valued, with potential for higher returns in other market opportunities. It's crucial for investors to consider these factors when making financial decisions.
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