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Highlights

  • Stifel Europe has issued a Buy rating with a target price of AUD 22.17.

  • Berenberg reaffirmed a Buy rating, setting a target price of AUD 20.94.

  • Investec Bank (UK) PLC has maintained a Buy rating with a higher target price of AUD 24.52.

Kainos Group plc (LSE:KNOS), the UK-headquartered IT services and consulting company, has attracted positive recommendations from leading investment banks.

Stifel Europe analyst Peter McNally has issued a Buy rating with a target price of AUD 22.17, representing an upside of 25.22% compared to the latest share price of AUD 17.71.

Berenberg analyst Alex Short also reaffirmed a Buy rating, setting a price target of AUD 20.94, indicating a potential upside of 18.87%.

Investec Bank (UK) PLC analyst Julian Yates maintained a Buy stance with the highest target among the three, at AUD 24.52, reflecting a premium of 38.49% to the current market level.

Acquisition of Davis Pier

On 19 September 2025, Kainos announced the acquisition of Davis Pierrynowski Limited (Davis Pier), a Canadian consultancy specialising in public sector and community-focused transformation projects.

Founded in 2014 and headquartered in Halifax, Nova Scotia, Davis Pier employs 120 staff across Nova Scotia and Ontario. The consultancy has worked closely with Kainos since 2022, jointly delivering projects in healthcare, early learning, and public administration. The acquisition strengthens Kainos’ Digital Services footprint in North America, particularly in the Canadian market.

Trading Update Points to Upper-End Revenue Guidance

In its latest trading update, Kainos indicated that revenues for the financial year ending 31 March 2026 are expected to be at the upper end of consensus forecasts, driven by strong sales momentum across divisions.

  • Workday Products surpassed the USD 100 million Annual Recurring Revenue milestone in July, with new product launches, including Pay Transparency, on track for Q3 2026.

  • Digital Services secured major programmes with NHS England, the UK Home Office, and the Driver and Vehicle Standards Agency, as well as ongoing growth in North America.

  • Workday Services is experiencing a return to growth, supported by gains in Europe, North America, Australia, New Zealand, and Mexico.

Outlook and Strategy

Despite global economic volatility, Kainos maintains a prudent but confident outlook, underpinned by its cash flows, a healthy balance sheet, and long-term structural drivers such as AI adoption and digital transformation in healthcare and public services.

The company will report results for the six months ending 30 September 2025 on 10 November 2025.

Analysts from Stifel Europe, Berenberg, and Investec Bank have all reinforced their positive outlook on Kainos Group with Buy ratings and attractive target prices ranging from AUD 20.94 to AUD 24.52.