Berenberg raises target price on Morgan Sindall

(Sharecast News) - Analysts at Berenberg raised their target price on construction outfit Morgan Sindall 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