Berenberg raises GB Group to 'buy' on multi-year growth story

Analysts at Berenberg hiked their target price on data intelligence outfit GB Group from 680.0p to 1,020.0p on Tuesday, stating it was time to buy the company's multi-year growth story.

Berenberg said it had always maintained that GB Group was "one of the highest-quality and most attractive" companies in its coverage.

With consensus too bearish on Covid-19's impact on 2021 full-year results, merger and acquisition catalysts building and the opportunity for its organic growth rate to accelerate in 2022 and beyond under-appreciated, the analysts felt it was time to upgrade the stock to 'buy'.

The German bank highlighted that its underlying earnings estimates for GB were 15%/10%/5% ahead of consensus in 2021-23, respectively.

Berenberg, which also upgraded the group from 'hold' to 'buy', said GB's point of difference was "clear" and stated that with Covid-19 accelerating e-commerce adoption and corporate digital transformation agendas, the company will benefit from higher global demand for fraud prevention, identity management and digital compliance software.