Serco Group shares get a day-two bump from leading City bank after upgrading its guidance


Serco Group (LSE:SRP) PLC shares continued their run after Monday’s surprise trading statement in which the support services group joined the ranks of listed companies upgrading earnings forecasts.

A key driver was higher-than-anticipated Covid contract volumes.

Barclays Capital weighed in on Tuesday with an upgrade to revenue guidance, which is expected to grow by 10% this year, according to the bank’s analysts, while underlying trading profit is forecast to be GBP225mln, up 13%.

The shares were ahead 1.4% mid-afternoon at 136p. Reiterating its ‘overweight’ recommendation, Barclays said the stock was worth 180p.

Of the 11 analysts logged as following Serco all are positive. The consensus share price target is 173p.


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