LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity upped their target price on British stone and concrete manufacturer Marshalls on Thursday, seeing benefits from its "relatively sizeable" acquisition of Edenhall.
Canaccord said Marshalls' acquisition of the concrete brick manufacturer had increased the group's exposure to the "attractive" new housing and brick market, consistent with its strategy.

"Financially the deal looks attractive; it is earnings enhancing in its first full year and leverage remains at a very conservative level in 2019 despite the acquisition"

Having factored in the Edenhall acquisition, Canaccord now expects Marshalls to turn in pre-tax profits of £62m and £66.5m over the next two years.

The Canadian broker also praised the firm for its ability to continue delivering upgrades against a "very challenging wider UK construction market" and outperform many of its peers in the sector.

While the FTSE 250 constituent's valuation continued to sit at a premium to the sector, over recent years it felt its premium "looks justified" and so Canaccord maintained its 'buy' rating on Marshalls and set a new 500p target price for the shares.

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