RBC Capital lifts Intertek to ‘sector perform’
RBC Capital Markets upgraded its stance on inspection, product testing and certification company Intertek on Tuesday to ‘sector perform’ from ‘underperform’ as it said the stock was close to fair value.
The bank said it sees last week’s CME as a welcome fundamental reset in Intertek’s engagement with the capital markets, tangibly lowering the risk profile of the equity story.
"Though further expensive M&A remain a risk to return on invested capital, we think cautious FY23 guidance and soft comps limit the risk of disappointment and believe the historically resilient TIC sub-sector is likely to prove something of a safe haven as the lagged effect of monetary tightening impacts the wider economy," it said.
RBC lifted the price target to 3,900p from 3,700p.