LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on oilfield services provider John Wood Group from 250.0p to 300.0p on Friday after the firm released a full-year trading statement indicating both revenues and adjusted underlying earnings were in line with prior guidance and consensus.
More importantly, Berenberg stated John Wood had confirmed that it will push ahead with the sale of its Built Environment consulting business, a move it expects to conclude in the second quarter of 2022.

"We believe, based on the valuation of peers, that the business could be sold for an attractive multiple (12-18x EV/EBITDA gives a range of $1.9bn-2.7bn). This could leave the group net cash, attractively valued and able to re-start a dividend at a point when the underlying business is inflecting higher," said the analysts.

The German bank, which reiterated its 'buy' rating on the stock, adjusted its estimates for John Wood's update, with earnings per share estimates now seen "marginally improved" for 2021 and increased 8% and 5% for 2022 and 2023, respectively, due mainly to lower depreciation, depletion, and amortisation.

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