RBC starts SPIE at 'sector perform', sees more upside in other names

** RBC initiates coverage of SPIE SPIE.PA with a "sector perform" rating and a PT of €45

** The broker says the French technical services group which installs and maintains electrical, mechanical and building systems, benefits from defensive markets and strong recurring revenue

** SPIE is exposed to structural growth in power grids, data centres and renewables, and its fragmented markets offer a sizeable acquisition opportunity, RBC says

** But the broker sees better value in other stocks in the sector, naming Elis ELIS.PA, Securitas SECUb.ST and Serco SRP.L

** Organic growth, excluding acquisitions and currency effects, has historically been choppy and has stayed below 2% over the past 18 months, the broker notes

** The broker and the market expect organic growth to pick up to about 3.5% in Q3, with results due on October 30