RBC Capital Markets upgrades RS Group to 'outperform'

RBC noted that the stock has underperformed the FTSE 100 by around 30% since peaking on bid speculation last August.

"Growth expectations have reduced, the CEO and US management uncertainty has been removed, RS1 has done an excellent job on margins and valuation has come back to an attractive level," it said.

"We continue to see RS1 as a long-term winner with the potential for further share gains and the strong balance sheet provides options in the current environment."

The bank maintained its 1,000p price target on RS Group, which was formerly known as Electrocomponents.

At 1250 BST, the shares were up 2% at 866.00p.