Clarkson has further upside after 1H results, Canaccord says

(Sharecast News) - Canaccord Genuity has lowered its price target for Clarkson after the shipping company's first-half results this week, but says that stock is still a 'buy' following recent falls. The broker cut its target from 4,325p to 4,275p on Tuesday, a day after Clarkson reported pre-tax profit for the six months to June 30 came in at £52.2m, up from £42m a year earlier.

As of 1317 BST, the share price was 2,745p, having fallen 12.3% since the start of 2023.

The company, which provides ship broking services, digital tools and finance to the maritime industry, is on track to meet expectations this year, according to Canaccord analyst Damian Brewer.

Looking ahead, Brewer says: "We think Clarkson will continue to reap the reward of long-term higher market rates, while improving IT efficiency suggests gross broking profit per employee could rise (something 2022 already demonstrated) - which we think will support margins, profits and dividends."

Beyond 2023, he says the company could "surprise to the upside" with dividend payouts, "which for an asset-light company is a key share price driver, in our view".