INTERTEK : Stifel maintains 'sell' rating on the stock
May 24, 2024 at 07:07 pm IST
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Stifel maintains its 'sell' recommendation on Intertek shares, with an unchanged target price of 3,700 pence.
The analyst reports that Intertek this morning published a trading update for the period January to April, showing a good start to the year, with better-than-expected organic growth of 7% - albeit offset by a weaker-than-expected foreign exchange (FX) effect, leaving revenues ultimately in line with expectations.
"We think this is a good start to the year, underlined by this better organic growth performance, however, we don't see scope for upward revisions to estimates due to the negative FX effect", judges the broker.
In this context, and given the performance of the shares since the beginning of the year, we do not believe that this publication should trigger a positive reaction from the stock market", concludes Stifel.
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Intertek Group plc is one of the world's leading groups specializing in analysis, control and certification of products and systems. Net sales break down by activity as follows:
- control and certification services for consumer goods (63.4%): textiles, footwear, toys, stationery, household appliances, consumer electronics, information and communication technology products, and products from the automotive, aerospace, lighting, construction, renewable energy and healthcare industries. Also, the group is developing an activity to monitor the certification of international standards;
- development of quality assurance solutions for the industry and infrastructures (25.9%): for the supply chain in the building and construction, renewable energies, oil and gas, petrochemicals, minerals and other industries;
- cargo inspection, analytical evaluation, calibration and technical services to the oil and biofuels industries (21.9%);
- monitoring and assessment of petroleum and agricultural products (19.9%). Besides, Intertek Group plc offers inspection services to government system and regulators to support commercial activities, contributing to the movement of goods across borders.
At the end of 2023, the group operated more than 1,000 inspection offices and laboratories in the world.
Net sales are distributed geographically as follows: the United Kingdom (6.5%), the United States (30.7%), China and Hong Kong (17.8%), Australia (5.3) and other (39.7%).
INTERTEK GROUP PLC 
