Deutsche Bank Retains RECN Hold Rating

Deutsche Bank is retaining its Hold rating on Resources Global RECN. “Our $19 price target is based on IRRs to mid-cycle share prices, historic early cycle multiples, EV/sales comparisons and a DCF analysis,” Deutsche Bank writes. “Downside risks to our Hold include: lower incremental margins, decelerating growth, loss of major clients due to competition or mergers, or expensive acquisitions. Upside potential includes: greater capital returns than expected, regulatory change that drives demand, or greater incremental margins than expected.” Resources Global currently trades at $21.08.