Serco’s Share Price Target (LON: SRP) Trimmed

Serco Group shares (LON: SRP) have fallen 0.75% in early trading today, bringing the cumulative 5 session loss to 10.55%. Currently trading at 158.60, Deutsche Bank has announced that it has lowered its price target for Serco Group to 185 GBp from 205 GBp, while maintaining a Hold rating on the shares.

Deutsche Bank's price target adjustment reflects a refined valuation of Serco Group amidst the current market environment and remains a healthy potential upside away of more than 20%.

Serco Group, established in 1929, is headquartered in the United Kingdom. The firm provides a range of public services in regions including the UK, Europe, North America, Asia Pacific, and the Middle East. Operating within the Industrials sector and focusing on Specialty Business Services, Serco Group offers a myriad of services—from advisory and management to engineering and various support services. It also actively participates in societal decarbonization through initiatives such as the installation of ground source heat pumps and solar panels.

The company's market capitalization stands at approximately 1.64 billion. In the past year, Serco Group's stock has swung between a low of 148.70 GBp and a high of 196.40 GBp.

Financially, Serco Group possesses a trailing P/E ratio of 12.6, pays a dividend yield around 2.2%, and has a payout ratio of 26.96%. The company reported total revenue of around 4.76 billion GBp and a net income to common shareholders of 139 million GBp.

Analysts targets across the board reflect a relatively bullish picture on Serco shares. With the stock treading water through the year, down 2.40% since the beginning of 2024, the newly issued low price target of 185p continues to represent significant potential upside. The high target of 284p, and the consensus around 220p would in fact represent ~10 year highs if these can be tested.