LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity hiked their target price for shares of Michelmersh Brick Holdings from 146.0p to 162.0p, pointing out to clients the company's good execution amid challenging circumstances and "strong" cash conversion.
The clay brick and tile maker's latest interims and performance over the half were both "impressive" and its low levels of finished stock pointed to underlying full-year earnings before interest, taxes, depreciation and amortisation coming in marginally ahead of 2019's "strong" outcome, they said.

Michelmersch was also seen ending the year with over £5m of cash on hand.

The analysts also bumped up their estimates for the company, despite cautious guidance from Michelmersch as regards the drivers for labour and inflation.

Nevertheless, Mickelmersch had entered the second half with a strong and balanced order book and was continuing to see positive order intake momentum from customers and in their construction-related end markets more generally.

"With business delivery very much back on track, the Group has also reinstated the interim dividend at 1.15p per share. The Group looks well placed to deliver a strong profit outcome for the full year and be well positioned to use its strong balance sheet to deliver attractive shareholder value over the medium term," the broker added.

Canaccord's recommendation on the shares was unchanged at 'buy'.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE