Berenberg raises target price on Morgan Sindall
Analysts at Berenberg raised their target price on construction outfit Morgan Sindall Group plc from 5,000p to 5,250p on Friday, following the group's revelation that its full-year results would be significantly ahead of previous expectations.
Morgan Sindall announced on Thursday that its FY25 earnings were expected to come in well ahead of guidance on the back of a continued performance improvement in its key Fit Out division.
"This is yet another strong update from Morgan Sindall - again reflecting the strength of the Fit Out performance, which continues to reach new highs," said Berenberg, which also noted that Morgan Sindall's order-book visibility and improvement in average net cash guidance had caught its eye.
The German bank, which reiterated its 'buy' rating on the stock, said it was cognisant of the strength of the shares over the last two years and also the dynamics regarding the future evolution of profitability in the Fit Out division, but stated it continues to support Morgan Sindall's strategy.
Berenberg also added that the stock trades at a 13.8x FY25 price-to-earnings ratio, 8.0x EBITDA and 9.4x EBIT.
Reporting by Iain Gilbert at Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
