RS GROUP PLC

RS Group shares rose 3% after Deutsche Bank upgraded the stock to buy from hold and lifted its target price to 775p from 700p. The bank cited an improving outlook for European cyclical companies, expecting them to benefit as industrial confidence rebuilds. A key factor is the prospect of an end to the Iran war, which should position cyclicals for better performance. Deutsche Bank noted that demand has proved robust and purchasing managers' index readings have turned positive. The international manufacturing cycle has historically explained two-thirds of RS Group's growth, and the bank's model now implies like-for-like growth of 4% is achievable in the 2027 financial year.