Analyst at Canaccord Genuity lowered their target price on professional services business K3 Capital Group from 452.0p to 414.0p on Monday following the company’s trading update for the six months ended 30 November.
Canaccord Genuity stated the update indicated that the group’s performance was in line with management’s expectations and showed that the company was “confident” in meeting market expectations for the full year.
K3 expects to report revenues in excess of £30.0m and adjusted underlying earnings of around £9.0m, said to be approximately 50% of market consensus figures.
The Canadian bank also pointed out that all business divisions were said to be continuing to perform well, driven by both organic growth in existing brands and contributions from Knight Corporate Finance and Knight R&D, which were acquired in July 2021.
Canaccord, which reiterated its ‘buy’ rating on the stock, highlighted that K3’s outlook indicated that it would maintain “strong pipelines across its brands” in the second half of the year, with the group’s focus remaining on organic growth and further acquisitions of complementary professional services businesses.
