Analysts at Credit Suisse expect shares of Intertek to gain, as margins recover in the second half of the year and the drop in Sterling benefits the company's results.

The Swiss broker is forecasting that the quality and safety services outfit will post an organic rate of growth for its fiscal year 2013 revenues of between 7% and 8%, weighed down in the first half of the year by continued weakness in Minerals (circa 5% of sales) and tough comparables.

"However, as growth accelerates in the second half, and aided by further BPO efficiencies and European restructuring, Intertek appears well placed for further material margin expansion," the broker writes.

As well, Intertek is expected to be a significant beneficiary from weakness in the Sterling/US dollar exchange rate, which affects approximately 55% of its sales and 65% of the company's profits.

Amongst the different additional catalysts which may have a bearing on the company's share price are: the release of its first half results on July 29th, further accretive acquisitions, weakness in the pound or increased commodity sector capital expenditure forecasts.

For all of the above reasons analysts at Credit Suisse have decided to raise their price target for the firm's shares to 3,850p from 3,550p before, while reiterating their outperform rating on its stock.

AB

Related share prices
Intertek Group (ITRK) share price