There are numerous reasons to buy RTC. Improved visibility due to its exposure to recurring, higher margin, contracts in the robust UK engineering sector now account for c46% of revenues – up from 25% in 2014. Following a strong start to 2017 we forecast adjusted PBT growth of 16%, a ROCE of 19% and a sustainable dividend and FCF yield of 7% and 11% respectively. With a PE rating of just 7x we initiate with a BUY recommendation and a price target of 85p, representing 73% upside.
08 Mar 2017
2017 PER of 7x and a dividend yield of 7%
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2017 PER of 7x and a dividend yield of 7%
RTC Group plc (RTC:LON) | 82.5 0 0.0% | Mkt Cap: 12.0m
- Published:
08 Mar 2017 -
Author:
Andy Smith -
Pages:
14
There are numerous reasons to buy RTC. Improved visibility due to its exposure to recurring, higher margin, contracts in the robust UK engineering sector now account for c46% of revenues – up from 25% in 2014. Following a strong start to 2017 we forecast adjusted PBT growth of 16%, a ROCE of 19% and a sustainable dividend and FCF yield of 7% and 11% respectively. With a PE rating of just 7x we initiate with a BUY recommendation and a price target of 85p, representing 73% upside.