Legal and professional Gateley (GTLY) has announced its latest acquisition, which Shore Capital says proves the group is fairly valued.
Analyst Jamie Murray retained his ‘hold’ recommendation on Gateley after it announced the acquisition of Symbiosis IP, a patent attorney firm specialising in life sciences, for £2.5m.
He said the deal will ‘strengthen Gateley’s patent and trademark services lines’ and the acquisition is a ‘small addition to Gateley’s modest [intellectual property] practice’ but does ‘diversify Gatelely’s geographic footprint and builds on a typically robust service line’.
‘We view this as a positive development but maintain our view that the group’s stock is fairly valued at current levels,’ said Murray.
He said the stock, which closed up 0.5% at 193p on Tuesday, trades ‘in line’ with the peer group on 11.7x estimated earnings for 2024.
Source: citywire.co.uk