- XPS Pensions Group
- 19 June 2025 14:40:03
Source: Sharecast
XPS reported an 18% year-on-year jump in total revenues to £231.8m, a 27% increase in adjusted underlying earnings to £69.7m and a 22 basis point increase in adjusted EBITDA margins to 30.1%.
Following XPS' Thursday morning earnings, Canaccord Genuity said its forecasts had been tweaked, with a 1% uplift to revenue in FY26 and FY27, also resulting in a similar upgrade to adjusted earnings per share.
"In our opinion, XPS is a very well-managed business with a strong culture, high client retention, and multiple significant revenue opportunities, all of which should continue to support at least mid-single-digit percentage organic revenue growth in the medium term," said the Canadian bank, which reiterated its 'buy' rating on the stock.
"The defensive, regulatory-driven characteristics of the revenue model, while delivering operating leverage, remains very much a key attraction, in our view."
Canaccord Genuity noted that when arriving at its target price, it had taken the peer group's one-year forward price-to-earnings ratio of 20.5x and applied it to its CY26 EPS forecast. It also said its new target price implied a 22% upside and a total shareholder return of 26%.
Reporting by Iain Gilbert at Sharecast.com