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UK Stocks: Intertek Kicks off 2024 with Revenue Surge; Shares Gain
Global Markets

UK Stocks: Intertek Kicks off 2024 with Revenue Surge; Shares Gain

Story Highlights

The UK-based product testing and certification company Intertek’s shares are on the rise after the company reported a favourable trading statement for the first four months of 2024.

In key news on UK stocks, Intertek Group PLC (GB:ITRK) shares gained over 1% as of writing after the company kicked off 2024 with higher revenues. As per its trading statement, the company reported 7.5% revenue growth on a constant currency basis from January to April 2024. Considering its strong performance so far in the year, the company reaffirmed its guidance for the full year 2024.

Intertek provides quality assurance, testing, and certification services to various industries. Year-to-date, ITRK stock has gained 18.2% in trading.

Insights from Intertek’s Trading Update

Among its segments, the Consumer Products business had the highest revenue contribution of £297.6 million, marking 6.2% LFL (like-for-like) growth. Within Corporate Assurance, there was a notable 7.6% increase in LFL revenue to £152 million. Similarly, the Health and Safety segment experienced a substantial 9.9% surge, reaching £105.2 million.

The company also progressed well in boosting its margins, driven by strategic pricing, operational efficiencies, and stringent cost management.

In terms of outlook, the company is targeting mid-single-digit LFL revenue growth at constant currency rates in the full year. Additionally, it aims to surpass its previous peak margin of 17.5% in the medium term.

The company will announce its half-yearly results for 2024 on August 2.

Is Intertek a Good Investment?

Despite a positive update, analyst Simon LeChipre from Stifel Nicolaus maintained his Sell rating on ITRK stock, predicting a downside of 25.2%.

As per the consensus among analysts on TipRanks, ITRK stock has been assigned a Hold rating. This is based on four Buy, one Hold, and three Sell recommendations. The Intertek share price target is 4,925p, which is 1.46% below the current level.

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