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RBC Capital lifts CVS Group price target, reiterates ‘outperform’ rating

RBC Capital Markets lifted its price target on CVS Group on Tuesday after the Competition and Markets Authority announced the findings of its two-year investigation into the vet market last week and suggested remedies.

  • CVS Group
  • 21 October 2025 09:40:58
CVS Group

Source: Sharecast

The bank said the CMA's proposed decision "removes any existential threat, enabling investors to refocus on solid fundamentals and a substantial opportunity to continue the roll-up story".

It lifted its price target on CVS to 1,900p from 1,500p and reiterated the ‘outperform’ rating.

"We calculate that its strengthened balance sheet provides 30% upside optionality to earnings by 2029," the bank said.

RBC said the previous price target included a 25% discount for perceived CMA risk.

"Rolling this forward and removing the discount would result in a £21.5 fair value in one year, but we set our price target at £19 to account for the current slower growth dynamic for the veterinary market," it said.

"This represents a 10.2x 2027E EV/EBITDA multiple and 20x P/E."

At 0940 BST, the shares were up 1.4% at 1,414.79p.

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