Canaccord Genuity reiterates 'buy' rating on Equals Group following 'record' H1

Analysts at Canaccord Genuity retained their 'buy' rating on IT service management company Equals Group on Wednesday following the company's "record" first-half results.

Canaccord Genuity said Equals had reported "an excellent set of results", demonstrating "strong progress" during the half and providing a "bullish" outlook.

The Canadian bank noted that performance was said to "remain in line with expectations for the full year", leading it to leave its forecasts unchanged for the time being but said it believes positive momentum implies upside risk.

"Trading has remained strong in Q3'22 despite economic headwinds, with QTD (to 5 Sep) revenue of £13.3m (+55% y/y) and YTD revenue of £44.7m. This represents 69% of our full-year forecast (£65.0m)," said the analysts.

"EQLS is trading strongly. Revenue growth is accelerating and management's comments about current trading give us considerable comfort in the likely full-year result. The ongoing strengthening of the balance sheet also gives options, whether it be M&A, organic expansion &/or the commencement of a dividend policy. For the time being, we leave our forecasts unchanged."

Canaccord also stood by its 144.0p target price on the stock.

Reporting by Iain Gilbert at Sharecast.com