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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Berenberg highlights 'attractive opportunity' for RWS investors

(Sharecast News) - Berenberg has maintained a 'buy' rating for RWS after the company introduced a "compelling" new growth strategy on Tuesday. Alonside its half-year results, which were already flagged in a trading update in April, the corporate content solutions group delivered a fresh strategy.

This included a new, simplified go-to-market positioning with regional sales teams and a tech-first proposition, and the reorganisation of the business into three units: Generate (content tech and TrainAI); Transform (localisation businesses); and Protect (IP services).

"We think this new, simplified messaging and go-to-market strategy around RWS's value-add proposition should be well received by investors, while also marking impressive progress under new CEO Ben Faes, who joined in January 2025," Berenberg said.

"With clear upcoming milestones as the strategy is put into action and new KPIs and medium-term guidance are announced, we think a valuation of 6.9x FY26 P/E and 3.5x FY26 EV/EBITDA offers an attractive opportunity for investors as the equity story rebuilds momentum."

The broker has a 240p target price for the stock, suggesting significant upside from Tuesday's 86.5p level, up 1.5% on the day.

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