Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Berenberg has initiated coverage on XPS Pensions Group (LON:XPS) with a Buy rating and a price target of GBP4.40, citing strong growth prospects in the UK pensions consulting sector.
The FTSE 250-listed company, which specializes in consulting and administration services for UK pension schemes and insurers, has benefited from an evolving pensions environment and recent market volatility, according to the research firm.
Berenberg forecasts organic revenue growth rates exceeding 17% annually over fiscal years 2023-2025, with adjusted EBITDA expected to double from fiscal year 2022 levels.
While the firm projects adjusted EPS growth will moderate to 3% in fiscal year 2026 due to one-off factors, it expects growth to rebound to 7-9% annually over fiscal years 2027-2028, driven by enduring recurring growth drivers in pensions and expansion into the adjacent insurance market.
Berenberg views the recent pullback in XPS shares as providing an attractive entry point, with the stock trading at a fiscal year 2027 P/E of 15.2x and EV/EBITDA of 9.6x, which it considers attractive given the company’s growth recovery potential and high earnings quality.
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