Costain Group - now in FTSE250 Index, shares up again at 191.40p, SQC TP 199.50p

Mark Watson-Mitchell - 26.02.2026

This morning, FTSE Russell has announced changes to the FTSE UK Index Series effective next Tuesday, 2nd March, following Ashtead Group's transfer of listing category.

Ashtead Group will be removed from the FTSE 100 index.

Tritax Big Box REIT will be added to the FTSE 100 and removed from the FTSE 250, while Costain Group (LON:COST) will be added to the FTSE 250 and removed from the FTSE SmallCap index.

Inflection Point?

The group's shares, which had peaked at around 170p late in August, fell back to 122p by mid-September.

It was just a few months ago that Roland Arnold, boss of the £560m BlackRock Smaller Companies Fund (LON:BRSC), commenting upon the group's shares fall back in price last Autumn, stated that:

“The decline was attributable to a reduction in transportation as a result of expected road project completions and delays in some major infrastructure contracts, including a rephased schedule from HS2.

We believe the sell-off in the shares was an overreaction, given the government’s infrastructure commitments and regulation in water and energy driving investment, which should underpin the group’s future growth prospects.”

Subsequently, following a period of good contract and corporate news, they have seen a good price recovery in 2026.

Last Thursday they hit 193p, a new five-year High.

However, over the last week they have seen some top-slicing, driving the price down to 183p, before closing at 186p last night.

This morning's news of its entry into the FTSE-250 Index, has helped it to recover to 191.40p as I write.

The Business

Costain helps to shape, create and deliver pioneering solutions that transform the performance of the infrastructure ecosystem.

It offers various services, such as consultancy and advisory, digital technology solutions, and complex programme delivery.

The company, which offers that range of services across the whole lifecycle of its customers' assets, operates through two segments: Natural Resources and Transportation.

It focusses upon four strategic markets in the UK: transport, water, energy, and defence.

The business is involved in research and development in its highways, integrated transport, aviation, energy, defence, water, and rail sectors.

Its energy services include energy transition, oil and gas, electricity and gas networks, and industrial cooling.

Broker's Views

There are some six brokers that closely follow this group, five of whome rate the shares as a Buy, the other saying Hold.

The consensus average Target Price is 204p, with the Lowest call at 150p, and the Highest at 297p.

My View

That FTSE-250 Index elevation will, undoubtedly, see the group gaining further investor interest, especially ahead of its 2025 Finals being declared on Tuesday 10th March.

I anticipate that my latest target price will be easily achieved very soon and now look forward to reassessing my views upward after the imminent Finals in two weeks.

(Profile 05.09.19 @ 155p set a Target Price of 250p)

(Profile 02.08.21 @ 55p set a Target Price of 69p*)

(Profile 24.08.23 @ 50p set a Target Price of 62p*)

(Profile 20.08.25 @ 139p set a Target Price of 175p*)

(Profile 21.01.26 @ 160p set a Target Price of 199.50p)