- Home |
- Request a Brochure |
- Open An Account |
- Demo Account |
- Prime Markets |
- Careers |
- Contact Us |
Risk Warning
31/05/2011
After Serco's recent share price underperformance, Prime Markets thinks that Tuesday's acquisition of Intelenet should "safely propel" shares higher.
The support service provider has bought India-based business process outsourcing firm Intelent for up to £385m.
"The acquisition is in line with Serco's strategy which is focused on driving organic growth, supplemented by strategic acquisitions of skills and capabilities to enter new markets and sectors where it sees strong opportunities to enhance growth and margins," said Prime Markets' head of dealing Richard Curr.
Curr notes that Serco's solid performance from existing markets combined with the added exposure to emerging market growth should push the share price through the "all-important" 200-day moving average of 573p.
The broker's target price for the stock is 590p, and a 'buy' rating is maintained.
Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.