Morgan Sindall Group (MGNS)

Sector:

Construction and Building Materials

Index:

FTSE 250

3,820.00p
   
  • Change Today:
      20.00p
  • 52 Week High: 3,955.00
  • 52 Week Low: 2,040.00
  • Currency: UK Pounds
  • Shares Issued: 47.97m
  • Volume: 20,667
  • Market Cap: £1,832.62m
  • RiskGrade: 151
  • Beta: 0.99

HSBC hikes target price on Morgan Sindall

By Iain Gilbert

Date: Tuesday 22 Oct 2024

LONDON (ShareCast) - (Sharecast News) - Analysts at HSBC raised their target price on construction firm Morgan Sindall from 2,930.0p to 3,615.0p on Tuesday following the group's trading update.

HSBC said Morgan Sindall has long prided itself on balance sheet discipline and finds itself the net beneficiary of a competitive landscape where ISG has gone into administration, noting its strong balance sheet has become more of a competitive advantage.

The UK bank, which stood by its 'buy' rating on the stock, stated new competition will enter the market, attracted by the structural growth of fit-out, but said Morgan Sindall appears to be winning business at "a very healthy rate".

"We lift our 2024e adj. PBT forecast by c12% to reflect the current ability to win contracts. We expect this to last into 2025e and lift our 2025e adj. PBT by c8%. The 10-year +/-1sd historical 12-month forward PE range got MGNS is 8.2-11.3x. We set our target price based on a target PE multiple of 13.5x (from 12.0x), now at a premium to the historical range due the supportive plans of the UK's new government, a return to profitability nearing for Property Services, and the competitive strength in Fit Out, itself a growing market," said HSBC.

"For us, that builds further on the group's order book visibility, record of execution, and benefits demonstrated from its diversified exposures. We apply our target multiple to our revised 2025e EPS estimate of £2.72 (from £2.52), which results in a year-end fair value of 3,674.0p that we discount back at a 10% annualised required rate of return to set our TP at 3,615.0p (rounded). Our TP implies circa 11% upside."



Reporting by Iain Gilbert at Sharecast.com

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

MGNS Market Data

Currency UK Pounds
Share Price 3,820.00p
Change Today 20.00p
% Change 0.53 %
52 Week High 3,955.00
52 Week Low 2,040.00
Volume 20,667
Shares Issued 47.97m
Market Cap £1,832.62m
Beta 0.99
RiskGrade 151

MGNS Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
82.55% below the market average82.55% below the market average82.55% below the market average82.55% below the market average82.55% below the market average
73.68% below the sector average73.68% below the sector average73.68% below the sector average73.68% below the sector average73.68% below the sector average
Price Trend
97.47% above the market average97.47% above the market average97.47% above the market average97.47% above the market average97.47% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
8.40% above the market average8.40% above the market average8.40% above the market average8.40% above the market average8.40% above the market average
3.45% below the sector average3.45% below the sector average3.45% below the sector average3.45% below the sector average3.45% below the sector average
Growth
47.34% above the market average47.34% above the market average47.34% above the market average47.34% above the market average47.34% above the market average
61.11% above the sector average61.11% above the sector average61.11% above the sector average61.11% above the sector average61.11% above the sector average

What The Brokers Say

Strong Buy 5
Buy 2
Neutral 0
Sell 0
Strong Sell 0
Total 7
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

MGNS Dividends

  Latest Previous
  Interim Final
Ex-Div 03-Oct-24 25-Apr-24
Paid 24-Oct-24 16-May-24
Amount 41.50p 78.00p

Trades for 03-Dec-2024

Time Volume / Share Price
11:09 3 @ 3,820.00p
11:09 46 @ 3,820.00p
11:09 109 @ 3,820.00p
11:09 1 @ 3,820.00p
11:04 44 @ 3,820.00p

MGNS Key Personnel

CEO John Christopher Morgan
CFO Kelly Gangotra

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