On Tuesday, RBC Capital Markets maintained its Underperform rating on Securitas AB (SECUb:SS) (OTC: SCTBF) shares, with a steady price target of SEK85.00. The firm's decision comes ahead of the company's second-quarter results, with a focus on the anticipated continued decline in organic growth and particular attention on the European margin, following a weaker first quarter.
The unchanged Underperform rating reflects RBC Capital's anticipation of challenges within the European sector for the Sweden-based security services company. The firm's analysts foresee a further reduction in organic growth for Securitas, which is a key indicator of the company's core business performance.
RBC Capital has revised its earnings per share (EPS) estimates for Securitas for the fiscal years 2024 and 2025. The updated forecast includes a reduction of approximately 3 to 4 percent in EPS, attributed to the impact of a stronger Swedish krona (SEK). Despite this adjustment, the firm has left its operational forecasts for Securitas unaltered.
The focus now shifts to the upcoming quarterly report, where investors and analysts alike will be keen to assess the company's performance, especially within its European operations. The first quarter showed weaker margins, setting a precedent for scrutiny in the second quarter's financial outcomes.
Securitas AB's stock performance and future outlook will be closely monitored as the market awaits the release of detailed financial results for the second quarter, which will provide further insights into the company's operational efficiency and profitability.
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