LONDON (ShareCast) - (Sharecast News) - Berenberg initiated coverage of GB Group on Thursday with a 'buy' rating and 340p price target.
GB Group (GBG) operates in the identity verification, fraud prevention and location intelligence markets.

Berenberg said the company's cloud-native software uses data obtained from hundreds of providers to help businesses verify the location, identity, credentials and legitimacy of individuals.

"GBG has a long track record of organic and acquisition-driven growth, and was a significant beneficiary of the changes in consumer behaviour during the Covid-19 pandemic," it said.

"However, the business has since struggled to return to material growth, with its share price still down 70% from its October 2021 peak.

"While GBG's H225 was slightly weaker than anticipated, we have reviewed its growth credentials and think the recent product developments and ongoing reworking of its go-to-market strategy provide the potential for improvements to its organic growth rate and margins."

At 1055 BST, the shares were up 1.8% at 285.50p.

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