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Carillion downgraded by Beaufort

11 July 2017 16:43

Beaufort Securities has downgraded its recommendation on Carillion to hold (from buy) after the support services business warned that operating profit would be lower than expected and announced an expected contract provision of £845m.

The broker commented: "The deep hit on Carillion's share price yesterday reflected the market's understanding that the Board needs to embark on a relatively near-term fund-raising exercise to re-build its balance sheet ahead of undertaking a phase of restructuring and re-pointing its core expertise."

Meanwhile, Morgan Stanley stuck with its equal-weight stock call.

The City heavyweight said: "While the provisions de-risk the specific contracts to some extent, a continuing contract review and a new CEO suggest that further write-downs are possible."

At market close: (LON:CLLN) Carillion PLC share price was -39.17p at 77.93p

Story provided by StockMarketWire.com

Related Company: CLLN

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