Construction and Building Materials
By Iain Gilbert
Date: Thursday 01 Sep 2022
LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg reiterated their 'buy' rating on UPVC products manufacturer Eurocell on Thursday as the group continued to make market share gains.
Berenberg said Eurocell's first-half results were "robust", with the group delivering 13% revenue growth, maintaining guidance, and continuing to win new fabricator customers, supporting 2023 forecasts.
The German bank stated that with Eurocell shares now trading on a 7.8x price-to-earnings ratio, it thinks they are "compelling" given several company-specific tailwinds - including market share gains, favourable sustainability tailwinds, and margin benefits from new facilities.
Berenberg also expects the group to end 2022 with leverage of 0.3x net debt/underlying earnings, aided by a reduction in inventory, leaving plenty of optionality.
"As the benefits of the new facilities come through, we believe management's focus can shift towards M&A and supplementary cash distributions," said the analysts.
Berenberg also maintained its 310.0p target price on the stock.
Reporting by Iain Gilbert at Sharecast.com
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Currency | UK Pounds |
Share Price | 134.50p |
Change Today | 0.000p |
% Change | 0.00 % |
52 Week High | 137.00 |
52 Week Low | 106.00 |
Volume | 3,997 |
Shares Issued | 109.46m |
Market Cap | £147.23m |
RiskGrade | 145 |
Value |
---|
Price Trend |
---|
Income |
---|
Growth |
---|
Strong Buy | 2 |
Buy | 1 |
Neutral | 0 |
Sell | 0 |
Strong Sell | 0 |
Total | 3 |
Latest | Previous | |
---|---|---|
Final | Interim | |
Ex-Div | 25-Apr-24 | 14-Sep-23 |
Paid | 22-May-24 | 06-Oct-23 |
Amount | 3.50p | 2.00p |
Time | Volume / Share Price |
16:12 | 3,834 @ 135.00p |
08:59 | 163 @ 134.00p |
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