BUZZ-RPC: Facing investor pressure on growth options

** Shares (Berlin: DI6.BE - news) of British packaging firm fall 5 pct and are at the bottom of FTSE midcap index as investor pressure mounts

** Q1 revenue up 6 pct to £964.7 mln YoY; profitability and cash flow generation in line with mgmt expectations

** However, all investors' focus will be on capital allocation comments, Jefferies says

** "Pressure on the company's market valuation and differing investor views on the appropriate level of leverage is constraining the Group's ability to pursue some attractive opportunities for growth," RPC (NYSE: RES - news) 's chairman says

** Hence, co in short-term is to prioritise cash generation and disposal of non-core businesses to generate "increased capital for deployment in the business or further returns to shareholders" - chairman

** The chairman's comments mean that RPC is looking for "attractive bolt-on M&A opportunities" - per Jefferies,

** However, in the absence of capital deployment opportunities in the business, capital will be returned to shareholders (likely via larger share buybacks rather than dividends), the broker adds

** Stock is down 16 pct YTD