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Berenberg nudges up target price on Breedon

By Iain Gilbert

Date: Monday 20 Mar 2023

Berenberg nudges up target price on Breedon

(Sharecast News) - Analysts at Berenberg nudged up their target price on construction outfit Breedon from 80.0p to 85.0p on Monday, stating there was "plenty to play for".
Breedon's recent full-year results showed revenues had risen by 13% to £1.4bn and adjusted underlying earnings had grown 16% year-on-year to roughly £155.0m - which was about 5-6% ahead of consensus.

Berenberg noted that in "a tougher year for volumes", pricing was a key driver of organic growth and input cost recovery.

The German bank stated Breedon's 2023 volume outlook was again tough, with the Mineral Products Association's base case a roughly 5% decline. However, strategically it thinks Breedon has positioned itself "very well" in the UK and Irish markets given its level of vertical integration and exposure to more robust end-markets such as infrastructure and industrial.

"As a result, we think it can continue to outperform the market. We update our numbers for FY22, increasing our price target to 85.0p, but leave forecasts effectively unchanged," said Berenberg, which also reiterated its 'buy' rating on the stock.

Reporting by Iain Gilbert at


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