G4S: shares jump after UBS upgrade

(CercleFinance.com) - Shares in British security firm G4S are up almost 4% on Monday after UBS upgraded the stock to "buy," seeing upside potential in 2018.


UBS says G4S can play an active role in industry consolidation, and hence unlock the 25% discount at which G4S' cash operations are trading versus pure-players in its sector.

"We expect the discount to unwind as growth accelerates and the market revalues the cash handling unit," the broker says.

UBS' base case sees selective disposals (up to 40% of the business), although the broker says it does not rule out "a more radical shift."

UBS has raised its target price for the share from 300 pence to 310 pence.

The G4S stock is currently up 3.6% at 285.1 pence.

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