Broker tips: Balfour Beatty, James Fisher
By Iain Gilbert
Date: Tuesday 09 Sep 2025
(Sharecast News) - Analysts at Berenberg hiked their target price on Balfour Beatty from 660p to 710p on Tuesday as part of a wider look at the UK construction sector, citing a combination of strong year-to-date cash performance and peer multiples on the earnings-based business.
Berenberg said it was clear that Balfour Beatty has undergone "quite a significant transformation" in recent years and it was now on "a much firmer footing".
The German bank said Balfour Beatty was now pricing and structuring contracts "far more sensibly" than it has done historically, which should result in "a more reliable earnings stream" in the coming years. It also said Balfour Beatty's balance sheet was "in good shape" and that the firm's valuation was underpinned by the investment portfolio.
Berenberg noted that aside from the key focus remaining on the ongoing delivery of steady cash-backed profit growth and the prospect for more shareholder returns, it also highlighted growth opportunities across the UK energy landscape, especially in transmission and generation, as well as growth and new opportunities in UK defence markets and a continued uptick in the US construction order book, with a focus on the Buildings business.
Berenberg, which has a 'buy' rating on the stock, added that Balfour trades on a 12.2x full-year 2026 price-to-earnings ratio, at 5.4x EBITDA and 7.1x EBIT.
Canaccord Genuity took a fresh look at oilfield services firm James Fisher and Sons on Tuesday after the group reported a solid first-half performance.
James Fisher's H1 revenues of £192mn were broadly flat on the prior year, while underlying earnings of £33mn were up 5% year-on-year, and margins in the period were good, with defence in particular showing better progress and a sharply increased backlog.
The Canadian bank, which reiterated its 'buy' rating on the stock, also noted that trading for the year remains in line with existing expectations, and that James Fisher continues to make "good progress" in margins and preparing for growth.
"We are making minor adjustments to our forecasts, reflecting the update and outlook, which result in small upgrades to FY26E and beyond," said Canaccord Genuity. "We maintain our target price at 400p: we continue to see the potential for much improved margins at Fisher over the next few years."
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