DAVY VIEW

GB Group (GBG) operates in the large and growing identity verification, location intelligence and fraud prevention markets. With its diversified and highly cash-generative operating model, GBG has consistently been able to reinvest in the business, driving a blend of organic and acquisition-led growth. Despite its accomplished M&A capabilities, the recent US$736m acquisition of US player Acuant has negatively impacted the equity given the highly inflated, and predominantly cash, price paid. We initiate with an ‘Outperform’ recommendation and a 700p price target.