Knights Group Holdings Plc (KGH – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Sam Dindol from Stifel Nicolaus maintained a Buy rating on the stock and has a p170.00 price target.
Sam Dindol has given his Buy rating due to a combination of factors that suggest Knights Group Holdings Plc is well-positioned for future growth. The recent acquisition of Birkett Long, a regional law firm and financial advisory business, is expected to enhance Knights’ presence in the South-East and marks its entry into wealth advisory services. This acquisition not only strengthens Knights’ regional footprint but also offers significant cross-selling opportunities with its existing client base, potentially driving future organic growth.
Furthermore, the acquisition is anticipated to be immediately earnings enhancing, with Knights expecting to achieve a low double-digit profit margin post-integration. The valuation of the acquisition appears reasonable, and the company’s financial position remains robust with manageable leverage. Additionally, the upcoming trading update is expected to provide further insights into Knights’ performance, with potential upside to profit estimates based on positive industry commentary. These factors collectively underpin the Buy rating, reflecting confidence in Knights’ strategic direction and growth prospects.