Berenberg reiterates 'buy' rating on Morgan Sindall
Analysts at Berenberg reiterated their 'buy' rating on construction firm on Tuesday after the group issued a trading update.
Berenberg said management confirmed that year-to-date trading has been "encouraging" and "better" than originally expected - and said its current year performance was predicted to be in line with current expectations.
The German bank stated that Morgan Sindall's share price had largely recovered from its February to March lull, although Berenberg continues to believe "there is more growth to follow in time", given the various options Morgan Sindall's portfolio structure provides.
"We increase our EPS by 1-2% across the forecast period to reflect our latest view on the mix of business performance in the coming years," said Berenberg, which reiterated its 4,500.0p price target on the stock, which currently trades at a 12.3x FY 2025 price-to-earnings ratio, a 6.8x EBITDA and 8.0x EBIT.
Reporting by Iain Gilbert at Sharecast.com
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