Berenberg ups target price on Hill and Smith
Analysts at Berenberg raised their target price on construction and infrastructure products manufacturer Hill & Smith Holdings Plc from 2,500p to 2,650p on Wednesday after the group reported "an encouraging set of H125 results" a week earlier.
Berenberg noted that H&S management had forecast full-year underlying earnings to be in line with consensus estimates, despite incremental FX headwinds given its US dollar exposure. Hill & Smith also announced a new £100m share buyback, along with a continued commitment to bolt-on mergers and acquisitions.
The German bank said Hill & Smith's key US engineered solutions division continued to show "good growth with good margins", particularly in its larger-platform composites and utilities businesses.
It also said its galvanising services arm was "progressing well", with good organic growth, while UK & India engineered solutions remained subdued, with the UK being "somewhat of a drag".
Berenberg, which has a 'buy' rating on the stock, highlighted that Hill & Smith shares currently trade on 15.4x FY26 price-to-earnings ratio, 9.3x EBITDA and 11.4x EBIT.
Reporting by Iain Gilbert at Sharecast.com
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