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.
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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.
