Deutsche Bank Boosts CVS Group to buy with 36% upside despite mixed broker guidance and modest revenue growth

Deutsche Bank reaffirms its ‘buy’ recommendation for CVS Group, setting a target price of GBX 1,700 amid cautious broker sentiment and moderate revenue growth, as the veterinary services firm trades below its 52-week high.

Deutsche Bank has reaffirmed its “buy” view on CVS Group, setting a GBX 1,700 target price that implies roughly 36% upside from the shares’ previous close, according to MarketBeat. The call came as the veterinary services group traded higher in London, with the stock opening at GBX 1,248 and sitting well below its 52-week high of GBX 1,648.

The latest note adds to a mixed run of broker sentiment. Jefferies recently cut its recommendation to “hold” and lowered its target to GBX 1,350, while Berenberg maintained a “buy” rating with a GBX 2,000 target. On MarketBeat’s tally, CVS Group now has four buy ratings and one hold, producing a consensus “Moderate Buy” and an average target of GBX 1,710.

Investor attention has also focused on the company’s operating performance. Investing.com reported that CVS shares fell after a full-year trading update showed revenue growth of 5.9% to £712.8 million, but like-for-like growth of 2.1% remained below management’s medium-term objective. The group, which runs more than 475 veterinary practices across the UK and Australia, employs about 8,900 people and recently announced a share buyback plan.