Business Support Services

Half-time update – de-ratings create opportunity

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Bunzl plc OUTPERFORM 01/04/21 N/A N/A 2428p
DCC OUTPERFORM 30/06/09 N/A N/A 5966p
Electrocomponents plc UNDERPERFORM 01/04/21 N/A N/A 1044p
Hays plc OUTPERFORM 01/04/21 N/A N/A 161p
HomeServe plc OUTPERFORM 01/04/21 N/A N/A 956p
Intertek Group plc UNDERPERFORM 01/04/21 N/A N/A 5566p
IWG plc OUTPERFORM 01/04/21 N/A N/A 315p
PageGroup plc OUTPERFORM 01/04/21 N/A N/A 574p
Rentokil Initial plc OUTPERFORM 01/04/21 N/A N/A 504p
RWS Holdings plc OUTPERFORM 01/04/21 N/A N/A 572p
Serco Group plc OUTPERFORM 01/04/21 N/A N/A 139p

DAVY VIEW

Following a relatively strong Q1 and early Q2 in share price terms, the UK Business Services sector has come under pressure through the second half of Q2 with a number of stocks ending the quarter below where they began despite strong operating backgrounds and (in many cases) earnings upgrades. Balance sheets remain extremely strong; US Private Equity is finding significant sector value; and management commentaries express confidence. We believe this is time to look across the sector once more and highlight one or two standouts.

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Jul 5 2021, 06:45 IST/BST

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