G4S must be grateful for emerging markets given the problems and scandals that have hit the security group in the
Revenues in the three months to March rose 4.8%, in line with expectations. Emerging markets growth was 16% while revenue from developed markets was flat, while pretax profit was said to be slightly higher than a year ago.
The company ran into trouble when it - alongside
G4S said it had won £440m of new business, including from retail in the US and
Following the update, G4S shares are up 3.6p at 243.9p, and analyst Caroline de La Soujeole at
Emerging market growth was stronger than we had anticipated at 16% but developed markets were flat which is a bit weaker than we were expecting.
G4S has had a good start to the year but at this early stage we leave our forecasts unchanged. The group's "transformation programme" appears to be on track but we think this is fairly reflected in the share price.
We will be maintaining our forecasts this morning on the back of this statement, which are broadly in line with consensus. Given the recent strength in sterling, foreign exchange will continue to be a headwind for the group
We maintain our target price of 185p, which equates to 13 times 2014 earnings per share... The valuation remains at the upper end of its range with a high level of execution risk in our view. Within excess of 20% downside to our revised target price, we maintain a sell recommendation on the shares for now.
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