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On Friday, RBC Capital Markets sustained its Sector Perform rating and GBP50.00 price target on Intertek Group Plc (LON:ITRK:LN) (OTC:IKTSY), a quality assurance company. The decision came after Intertek provided a trading update for the initial four months of the year, covering January to April.
Intertek’s financial performance prompted RBC Capital to slightly adjust its earnings forecasts for the fiscal years 2025 and 2026, with a reduction of approximately 2%. This revision mainly reflects the impact of foreign exchange rates, particularly due to a weaker US dollar, which was not fully anticipated in Intertek’s currency guidance that is based on the January to April averages.
The update from Intertek highlighted a modestly weaker start to the year. However, this was somewhat balanced by positive shifts in the divisional mix of the business. According to RBC Capital, these shifts only marginally altered the underlying EBITA (earnings before interest, taxes, and amortization) estimates for the company.
Despite the minor changes in earnings estimates, RBC Capital chose to maintain both the price target and the stock rating for Intertek. The analyst at RBC Capital explained that the current guidance and price target take into account the recent trading performance and the currency headwinds faced by the company.
Intertek’s stock performance will continue to be observed by investors as the company navigates through the fiscal years, with the maintained Sector Perform rating indicating a neutral outlook from RBC Capital. The unchanged price target of GBP50.00 will serve as a benchmark for the stock’s potential value as assessed by the firm.
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