G4S to get worse but recover in 2018, Deutsche Bank upgrades

Deutsche upgraded to a 'buy' rating from 'hold' and hiked its target price to 340p from 330p, with the shares having fallen more than 16% since July's long-term high.

Growth should remain weak for two to three quarters, the bank's analysts said, cutting forecasts to 1.9% for the second half of 2017, from previous estimates of 3.2%.

But once the first quarter is out of the way, they expect faster growth in 2018 of 4.4% thanks to better year-on-year growth from its Cash360 business, alongside better overall expectations for emerging markets growth and in commodities.

"In the medium-term, selling cash solutions could provide capital to invest elsewhere," the analysts said, with Prosegur Cash and Loomis seen as potential buyers of some of some assets.

"We do not expect any material M&A near term, but could start seeing dividend increases from FY-17E or H1-18E."