Jacob Armstrong, an analyst from Stifel Nicolaus, maintained the Buy rating on XPS Pensions Group Plc (XPS – Research Report). The associated price target is p400.00.
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Jacob Armstrong has given his Buy rating due to a combination of factors related to XPS Pensions Group Plc’s strong financial performance and growth prospects. The company has released a trading update for FY25E indicating that its performance is expected to exceed previous expectations, with projected revenue growth of 15-16% year-over-year. This growth is driven by high demand from regulatory changes, new client acquisitions, and contracts linked to inflation.
Additionally, XPS has managed its costs effectively and improved operational efficiency through technological investments, resulting in better-than-expected financial outcomes. The company’s confidence in its continued strong performance into FY26E and its relatively undemanding valuation, with a P/E ratio of approximately 18.3x for FY26E, further support the Buy rating. The resilient business model and high-quality earnings, along with a positive medium-term outlook, contribute to a favorable investment case for XPS Pensions Group Plc.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of XPS in relation to earlier this year.