Barclays cuts target for GB Group on soft guidance

In particular, they noted how the new more sombre outlook had come soon after an upbeat Capital Markets Day in January.

They estimated that the identity verification, location intelligence and fraud prevention company's guidance implied 2023 and 2024 earnings before interest and taxes of roughly £60m and £63m, respectively.

That put it about 10% and 13% beneath the Bloomberg consensus.

"The statement is no doubt disappointing soon after an upbeat CMD in January," they said.

"Positively, issues appear around over-optimism around macro and contract timing as opposed to a deterioration in win rates / customer retention, and we assume the Fraud and Location divisions, not mentioned in the statement, continue to trade well following their strong first halves."

Barclays reduced its target price from 480.0p to 420.0p but kept its recommendation at 'overweight'.