Deutsche Bank raises target price on Polypipe
Genuit Group
451.00p
12:34 17/05/24
Analysts at Deutsche Bank raised their target price on Polypipe from 561.0p to 602.0p on Wednesday after the group raised 2020 underlying earnings guidance once again.
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Deutsche highlighted that Polypipe's move came as the ink was "barely dry" on its positive December update and had led it to move its full-year underlying earnings forecasts to £42.0m from £40.0m.
The German bank also acknowledged Polypipe's bolt-on acquisition of Nu-Heat, an underfloor heating specialist based in Devon, and raised its 2021 and 2022 underlying earnings estimates by roughly 7%.
"We see recent share price weakness as an excellent opportunity for those seeking exposure to a company with a strong track record," said Deutsche, which also reiterated its 'buy' rating on the stock.