RS Group shares climb 3% after upgrade on improving European industrial confidence and robust demand outlook.
RS Group shares rose 3% after Deutsche Bank upgraded the FTSE 250 distributor to buy from hold and increased its price target to 775p from 700p. The move reflects growing optimism about European cyclical companies as industrial confidence rebounds and demand remains strong.
The bank cited positive purchasing managers’ index readings and an expected end to the Iran war as key drivers for cyclicals. RS Group, which relies on short-cycle industrial and maintenance demand, could see like-for-like growth of 4% in the 2027 financial year, according to Deutsche Bank’s model. The upgrade also accounts for the company overcoming prior execution challenges.
Shares were trading at 600p following the announcement.