Kainos Group (LON:KNOS) Stock Rating Reaffirmed as "Hold" by Deutsche Bank Aktiengesellschaft

Key Points

• Deutsche Bank reaffirmed its Hold rating on Kainos Group and set a GBX 1,260 price target, implying 17.21% upside from the previous close.
• Analyst sentiment is more positive overall: four analysts rate the shares Buy and one Hold, giving the stock a consensus Moderate Buy rating and an average target of GBX 1,294.40.
• Kainos reported first-half revenue growth of 37% to £268.8 million, reportedly beating forecasts, but falling margins and limited near-term operating leverage may constrain profit growth.

Kainos Group (LON:KNOS - Get Free Report)'s stock had its "hold" rating reissued by investment analysts at Deutsche Bank Aktiengesellschaft in a research report issued to clients and investors on Tuesday, Digital Look reports. They presently have a GBX 1,260 price target on the stock. Deutsche Bank Aktiengesellschaft's target price points to a potential upside of 17.21% from the company's previous close.

A number of other analysts have also commented on KNOS. Canaccord Genuity Group reissued a "buy" rating and set a GBX 1,500 price target on shares of Kainos Group in a research note on Tuesday. Berenberg Bank reaffirmed a "buy" rating and issued a GBX 1,330 price objective on shares of Kainos Group in a research note on Tuesday. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 1,294.40.

Kainos Group Price Performance

Shares of Kainos Group stock traded down GBX 2 during trading on Tuesday, reaching GBX 1,075. 656,263 shares of the company's stock were exchanged, compared to its average volume of 2,534,639. The firm's 50-day moving average price is GBX 1,243.77 and its 200 day moving average price is GBX 938.98. The company has a market cap of £1.24 billion, a P/E ratio of 30.63, a PEG ratio of 2.15 and a beta of 0.87. Kainos Group has a 1-year low of GBX 686 and a 1-year high of GBX 1,360. The company has a debt-to-equity ratio of 6.11, a quick ratio of 1.59 and a current ratio of 1.17.

Kainos Group (LON:KNOS - Get Free Report) last issued its earnings results on Monday, November 9th. The company reported GBX 27.70 earnings per share for the quarter. Kainos Group had a net margin of 9.86% and a return on equity of 41.45%. The firm had revenue of £268.80 million for the quarter. As a group, research analysts anticipate that Kainos Group will post 48.10 earnings per share for the current year.

Kainos Group News Roundup

Here are the key news stories impacting Kainos Group this week:

• Positive Sentiment: First-half revenue rose 37% to £268.8 million, driven by government contracts, and sales and profit reportedly exceeded forecasts. The results provide evidence of solid demand, although margins declined. Kainos revenue jumps 37% as government contracts drive first-half growth
• Positive Sentiment: Canaccord Genuity reaffirmed its Buy rating with a 1,500p price target; Berenberg also maintained Buy, with a 1,330p target. Stifel previously reiterated Buy with a 1,395p target, citing growth prospects. Stifel maintains Buy rating
• Negative Sentiment: Despite beating Deutsche Bank’s forecasts, the bank sees limited near-term operating leverage. First-half margins also fell, which may constrain profit growth relative to sales growth. Kainos beats Deutsche Bank forecasts but bank sees limited near-term operating leverage
• Negative Sentiment: Hotter US inflation has weighed on Wall Street futures by renewing interest-rate concerns, a broader market risk that could also affect UK equities. Markets live: inflation fuels interest-rate concerns

About Kainos Group

Kainos Group plc engages in the provision of digital technology services in the United Kingdom, Ireland, North America, Central Europe, and internationally. It operates through three segments: Digital Services, Workday Services, and Workday Products. The Digital Services segment develops and supports custom digital service platforms for transforming service delivery in public, commercial, and healthcare sectors. The Workday Services segment provides consulting, project management, integration, and post deployment services for Workday's software suite, which includes cloud-based software for human capital management, and financial management, and adaptive planning.

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