Stifel Nicolaus analyst Sam Dindol maintained a Buy rating on Keystone Law Group Plc (KEYS – Research Report) today and set a price target of p750.00.
Sam Dindol has given his Buy rating due to a combination of factors that highlight Keystone Law Group Plc’s strong performance and potential for growth. The recent trading update for FY25E indicates that the company’s adjusted profit before tax (PBT) is expected to exceed market expectations, driven by sustained client demand and contributions from newly joined lawyers. Additionally, the company benefits from higher interest income on client monies, which has positively impacted its financial results.
Keystone’s recruitment trends are robust, with a significant number of high-caliber lawyers joining the firm, contributing to an increase in revenue per principal. The company’s business model is highly cash generative, maintaining a strong balance sheet, and offers flexibility and autonomy that attract top talent. Despite the stock trading at a premium compared to other listed law firms, its valuation is considered attractive given its growth prospects and market position. These factors, along with a target price of 750p, support the Buy rating.