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Canaccord stays at 'hold' on GB Group
Although GB Group showed a strong performance "across the board" in its last trading year, analysts at Canaccord Genuity chose to reiterate their 'hold' rating on the software and services company on Tuesday.
With revenues, adjusted EBIT, earnings per share and cash for its 2018 trading year all coming in line with Canaccord's forecasts, which the broker tweaked at the firm's update in April, the analysts also saw fit to repeat on their 500p target price on the group.
"GBG has had an excellent year across the board although this has now created a tough comparative for FY19, for which we leave our forecasts unchanged," Canaccord said.
Canaccord believes that GBG "fully deserves its high rating" based on an unblemished track record and opportunities for further growth given its strong positioning in an attractive market.
"However, a deal may be needed for the shares to make further progress in the short term and therefore we continue to rate the shares a 'hold' and maintain our 500p target price," the broker concluded.
Having picked up 27% since the firm's 18 April update, and although the business appears to be "firing on all cylinders", Canaccord warned that GBG could now face small headwinds in 2019.