Berenberg lifts price target on Hill & Smith ahead of update
Hill and Smith
1,786.00p
11:19 07/12/23
Berenberg lifted its price target on Hill & Smith on Monday to 1,600p from 1,490p as it updated its numbers ahead of a trading update this week, to reflect the acquisitions and trading so far in FY 2023.
FTSE 250
18,577.91
12:35 07/12/23
FTSE 350
4,135.55
12:35 07/12/23
FTSE All-Share
4,093.53
12:35 07/12/23
Industrial Engineering
13,339.96
12:34 07/12/23
The bank, which maintained its ‘buy’ rating on the shares, said it believes the business has clearly made material progress over the past 12-18 months in terms of portfolio improvements, underlying growth and pricing given strong cost inflation, "with more to come".
In the longer term, Berenberg thinks there is a "really interesting" opportunity to build a larger business.
"The market structure within galvanising in particular is such that it makes sense to buy assets with good management teams, good baseloads of customers, a good control of environmental and regulatory risks, as well as good regional economic structures," it said.
"For instance, with circa £50m-70m spend per annum over two to three deals, over a three- to five-year period that adds up into more meaningful scale."