Source: Sharecast
Berenberg, which reiterated its 'buy' rating on the stock, noted that Mitie's H1 trading update showed that revenue growth was strong across the group, driven by pricing and higher project volume.
Looking ahead, the German bank stated the prospect for further growth was underpinned by Mitie's strong order book and its "impressive bidding pipeline", which now stands at a record £31bn.
Berenberg also highlighted that Mitie's strong H1 performance, continued momentum and progress with its integration of Marlowe had provided the company with the confidence to resume its buyback programme, with the launch of a £100m programme, which it will execute over the next 12 months and bring the cumulative total of buybacks to £303m since FY23.
"We make minor adjustments to our numbers and incorporate the planned £100m buyback to our model, resulting in an uplift to our EPS forecasts and an increase in our price target to 185p," said Berenberg.
Reporting by Iain Gilbert at Sharecast.com