Berenberg raises target price on Vistry

Analysts at Berenberg raised their target price on construction firm Vistry from 1,270.0p to 1,490.0p on Tuesday, stating the group had continued to close the valuation gap.

Berenberg said Vistry was "closing the gap" to the rest of the sector and highlighted that despite strong outperformance year-to-date, it thinks there is still further upside to both forecasts and its multiple.

The German bank pointed out that in Monday's update, Vistry management lifted pre-tax profit guidance by 4% to £325.0m and said it continues to be about 6% ahead at £344.0m.

"Like its peers, Vistry will continue to benefit from the strong market, but it also offers lower risk, higher organic growth via the partnerships business and yet only trades at circa 9x earnings, compared to the sector on circa 11x," said the analysts.

"Vistry remains one of our top picks and we reiterate our 'buy' recommendation."