RBC Capital lowers target price on SIG

(Sharecast News) - Analysts at RBC Capital Markets lowered their target price on construction products business SIG from 870p to 800p on Wednesday as it updated its model to reflect the firm's new divisional structure and trimmed its adjusted underlying earnings estimates by 10% on average through FY28 reflecting weak underlying market conditions. RBC Capital Markets, which now sits roughly 5% below consensus on average, cut its group FY26 like-for-likes sales growth estimate to 0.4%, down from +1%, split between flat like-for-like growth for the UK and 0.7% LFL growth in Europe, down from 0.8% and 1.1%, respectively.

The Canadian bank also reduced its FY26 adjusted EBIT estimate by roughly £5m to £31.8m, leaving it £2m, or 6%, below consensus.

RBC Capital Markets also said it expects to see "a soft start to the year", reflecting previously flagged poor weather and "challenging conditions",

"For Q1 we forecast sales of £630m (-0.9% yoy), reflecting UK and Europe LFL growth at -2.1% / 0%, respectively," added RBC, which reiterated its 'sector perform' rating on the stock.







Reporting by Iain Gilbert at Sharecast.com