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Jul 5 2021, 06:45 IST/BST
Business Support Services
Half-time update – de-ratings create opportunity
- Sectors : Business Support Services
- Companies : Bunzl plc | Hays plc | Intertek Group plc | IWG plc | PageGroup plc | RWS Holdings plc | HomeServe plc | Serco Group plc | DCC | Rentokil Initial plc | RS Group plc
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 |
| RS Group 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.
