IVC - Citi rates the stock as Buy
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InvoCare failed to impress the broker in February, but Citi analysts have now made a 180 degrees turnaround declaring the company's Protect & Growth capex plan, costing $200m, is going to deliver.
In addition, the share price valuation is seen as too low. The analysts see a case for additional upside potential from cost savings, market share gains (yes), stronger case average growth, as well as from acquisitions in rural areas.
Estimates are, on their own admission, between 2-7% higher than market consensus. Price target improves to $14 from $13.50. Upgrade to Buy from Sell.
Sector: Consumer Services.
Target price is $14.00.Current Price is $11.86. Difference: $2.14 - (brackets indicate current price is over target). If IVC meets the Citi target it will return approximately 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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