By Michele Maatouk
Date: Tuesday 21 Oct 2025
LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets lifted its price target on CVS Group on Tuesday after the Competition and Markets Authority announced the findings of its two-year investigation into the vet market last week and suggested remedies.
The bank said the CMA's proposed decision "removes any existential threat, enabling investors to refocus on solid fundamentals and a substantial opportunity to continue the roll-up story".
It lifted its price target on CVS to 1,900p from 1,500p and reiterated the 'outperform' rating.
"We calculate that its strengthened balance sheet provides 30% upside optionality to earnings by 2029," the bank said.
RBC said the previous price target included a 25% discount for perceived CMA risk.
"Rolling this forward and removing the discount would result in a £21.5 fair value in one year, but we set our price target at £19 to account for the current slower growth dynamic for the veterinary market," it said.
"This represents a 10.2x 2027E EV/EBITDA multiple and 20x P/E."
At 0940 BST, the shares were up 1.4% at 1,414.79p.
| Currency | UK Pounds |
| Price | 1,307.00p |
| Change Today | 8.00p |
| 52 Week High | 1,424.00p |
| 52 Week Low | 1,114.00p |
| Volume | 193,385 |
| Shares Issued | 68.21m |
| Market Cap | £891.50m |