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On Thursday, Deutsche Bank (ETR:DBKGn) analysts increased their price target on Mitie Group PLC (LON:MTO:LN) shares to GBP1.50, up from GBP1.45, while reaffirming a Buy rating on the stock. The revision follows Mitie Group’s reported revenue of GBP5.1 billion, marking a 13% year-over-year increase, with organic growth at 9%, surpassing Deutsche Bank’s expectation of 7.3%. This growth persisted into the fourth quarter, with a 9% rise despite a strong previous year comparison in project work.
The company’s management now anticipates a full-year 2025 earnings before interest and taxes (EBIT) of GBP230 million, slightly above both Deutsche Bank’s estimate of GBP227 million and the Bloomberg consensus of the same figure. The expected EBIT margin is 4.5%, a decrease of 20 basis points, which reflects ongoing investments in the Transformation Plan and a loss in Telecoms projects.
Mitie Group’s bid pipeline saw a decrease of GBP1 billion in the quarter, which analysts believe is likely due to securing a major public sector security contract. Despite this reduction, the total contract value of wins and renewals for the fiscal year 2025 was approximately GBP7 billion, a 13% increase year-over-year.
The company’s performance and the revised price target suggest confidence from Deutsche Bank in Mitie Group’s ability to maintain its growth trajectory and manage investments effectively. The analyst’s commentary highlights the company’s solid revenue performance and the strategic wins that have contributed to its strong position moving forward.
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