European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>On 13 August, The Times reported of bid speculation around RS Group and specifically mentioned an offer at £15/share, a sizable premium to the prior closing share price.</li>
<li>The shares trade on 19.6x Fwd P/E and 12.7x EV/Fwd EBITDA (source: Refinitiv). My fair value estimate is 1,229p, which implies 29% upside.</li>
<li>I believe the shares offer value with good growth prospects, as the company takes advantage of operational leverage, and bolt-on M&amp;A, with the potential upside risk of a bid. LONG.</li>
</ul>


On 13 August, The Times reported of bid speculation around RS Group and specifically mentioned an offer at £15/share, a sizable premium to the prior closing share price.
The shares trade on 19.6x Fwd P/E and 12.7x EV/Fwd EBITDA (source: Refinitiv). My fair value estimate is 1,229p, which implies 29% upside.
I believe the shares offer value with good growth prospects, as the company takes advantage of operational leverage, and bolt-on M&amp;A, with the potential upside risk of a bid. LONG.


Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>Broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) were able to shrug off recent news of a more contagious Covid variant that popped-up in the UK. Additionally, Covid fears have done nothing to derail ongoing positive market dynamics. As long as support levels hold and market dynamics remain positive, our outlook remains bullish and we continue to view any weakness as a buying opportunity. Actionable Themes in today's report: Services, Technology, Manufacturing, and Materials.</p>

Broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) were able to shrug off recent news of a more contagious Covid variant that popped-up in the UK. Additionally, Covid fears have done nothing to derail ongoing positive market dynamics. As long as support levels hold and market dynamics remain positive, our outlook remains bullish and we continue to view any weakness as a buying opportunity. Actionable Themes in today's report: Services, Technology, Manufacturing, and Materials.

Global Equity Strategy: Support Levels Holding; Bullish Outlook Intact

United Kingdom

RS Group plc distributes industrial and electronic products. The Company offers products which include electronics, electrical, mechanical, automation, and health and safety components. RS Group serves customers worldwide.

RS Group plc (RS1 LN)

Takeover Interest

The Times reported of bid speculation around RS Group plc (RS1 LN) (formerly Electrocomponents) and specifically mentioned an offer in the works at...

Jesus Rodriguez Aguilar

Global Equity Strategy: Support Levels Holding; Bullish Outlook Intact

As long as support levels hold and market dynamics remain positive, our outlook remains bullish and we continue to view any weakness as a buying...

Vermilion Research