RBC Capital starts discoverIE at ‘sector perform’

RBC Capital Markets initiated coverage of discoverIE on Wednesday with a ‘sector perform’ rating and 760 price target, as it said the growth outlook remains strong, but less differentiated.

RBC noted that discoverIE has been built in its current form by M&A since 2011.

"Acquisitions remain a key strategic plank, though increased group scale may bring challenges," it said.

"The group also has a robust organic growth track record at around 2x our UK coverage average since 2013."

The bank said continued strong organic growth is forecast - 5.5% CAGR to 2028E - but accelerated peer group growth (+4.5% CAGR) means this is less differentiated.