Deustche Bank ups target price for Mitie following strong results

Shares in facilities management and professional services company Mitie were on the rise on Monday after Deutsche Bank lifted its target price for the stock following the group's better-than-expected annual results.

Results on 6 June revealed that record revenues of £4.51bn for the year ended 31 March, up 11% year-on-year, while adjusted operating profit surged 30% to £210m.

EBITDA came in at £268m, up from £214.5m the year before, ahead of the group's own £200m target and 5% above Deutsche Bank's forecast, while free cash flow beat analysts' estimates by 3%, surging to £158m from £66m.

"With the business having made a positive start to FY25E we upgrade FY25-27E EPS by 2-5%," said analyst James Beard.

"We expect the UK General Election to have a relatively minor impact on growth in the near-term, and we do not expect a possible Labour administration to meaningfully change the public sector contracting environment."

Deutsche Bank kept a 'buy' rating on the stock, which was up 2.1% at 119.6p by 1222 BST, putting its year-to-date gains at more than 22%.