Highlights

  • Mitie Group has secured a series of buy ratings accompanied by price targets of GBX 210 from Berenberg
  • The company secured buy rating from both Panmure Liberum and Stifel Europe, with target price of GBX 200.

Mitie Group plc (LSE:MTO) has drawn support from leading analysts, with three major research houses issuing buy ratings on the stock. Berenberg has set a price target of GBX 210, while Panmure Liberum and Stifel Europe have both assigned targets of GBX 200.

These ratings might have come as Mitie reported its interim results for the six months to 30 September 2025.

First Half Performance Supports Analyst Optimism

Mitie delivered group revenue of GBP 2,677 million for the period, representing a 10.4% increase compared with the previous year. Organic growth accounted for 6.4% of the uplift, supplemented by a 4% contribution from acquisitions. Contract awards reached a record GBP 3.8 billion, driving the order book to GBP 16.5 billion and lifting the bidding pipeline to GBP 33.0 billion, a substantial rise on the prior year.

Operating profit before other items increased 8% to GBP 109 million, while operating profit margin remained resilient at 4.1%. Basic EPS before Other items rose to 5.7p, supported by a lower average share count and increased operating profit. Free cash flow generation strengthened to GBP 52 million, with operating cash flow rising to GBP 115 million.

The business also maintained progress on strategic initiatives, including continued integration of the recently acquired Marlowe operations and the completion of refinancing through GBP 180 million in US private placement notes. A new GBP 100 million share buyback programme has commenced, with GBP 24 million spent to date.

Acquisition Strategy Continues with Forest Group Holdings

Alongside its interim results, Mitie announced the acquisition of Forest Group Holdings for a maximum consideration of GBP 7 million. Forest, a specialist engineering firm focused on commercial refrigeration, brings over 30 years of expertise and a blue-chip client base spanning major hospitality and retail brands.

The acquisition will strengthen Mitie’s Technical Services division by adding refrigeration installation and maintenance capabilities to its broader engineering portfolio. Forest’s 40 engineers will join Mitie’s existing teams, enhancing its ability to self-deliver critical services across multiple sectors. The transaction is expected to support further national expansion and deepen Mitie’s presence in markets where refrigeration reliability is essential.

Outlook Aligned with Market Confidence

Mitie has reiterated its full-year guidance, targeting operating profit before other items of at least GBP 260 million and free cash flow of at least GBP 120 million.