Berenberg lowered its target price on RWS Holdings Plc from 210p to 170p on Thursday following the content solutions firm's full-year results.
Berenberg said RWS' results for the year ended 30 September were previously trailed at its full-year trading update on 28 October, with revenues down 4% year-on-year at £690m, while adjusted pre-tax profits sunk 43% to £60.4m.
The German bank noted that new medium-term guidance has also been provided, with management targeting growth to accelerate from low-single digits, and a rebuild in profitability as RWS further shifts to become a technology-led AI service leader.
"We align our forecasts with prevailing consensus (de minimis changes) with the view that this becomes a base from which to build over time," said Berenberg. "We think the group's new model (which clarifies the group's value add proposition, and use of technology) and easier-tounderstand proposition should offer upside from a starting point of just 5.6X FY26 P/E on our updated forecasts."
Berenberg also reiterated its 'buy' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com