Costain Group shares hit new Five-Year High, heading through the 200p level shortly?

Mark Watson-Mitchell - 06.02.2026

This morning, the shares of my favourite infrastructure business, the Costain Group (LON:COST), have hit a five-year High at 186p.

In my view, they are heading higher and very soon.

It really has a lot going for it, boasting a record Order Book, together with a

strong balance sheet stuffed with some £190m of cash, as compared to its £493m market capitalisation, whilst making a very healthy £1m a week in profits.

Analyst Max Hayes, at Cavendish Capital Markets, rates the shares as a Buy, with a massive 297p Target Price.

Impressed by the company’s strong net cash balance, together with its margin profile, he has increased significantly his Target Price for the shares from 215p to 297p.

For the 2025 trading year to end-December, he has revenues of £1,050m (£1,251.1m) with adjusted pre-tax profits of £50.6m (£50.8m) generating earnings of 14.1p (13.9p) and paying out a dividend of 4.2p (2.4p) per share.

This current year, 2026, he sees revenues of £1,272.0m, with £53.0m of profits, 15.2p earnings and a 5.1p dividend.

His estimates for 2027 show £1,394.5m sales, £59.6m profits, earnings of 17.5p and a dividend of 5.8p per share.

He states that:

“Costain's shares have been among the strongest performers in Tier 1 construction, up 101% over the last 12 months.

We believe this reflects its building track record of low-risk delivery, which should continue driving discount compression to peers.

This underpins our 297p price target, based on a peer average EV/EBIT of 10.4x across CY26-27E and supported by Costain's strong net cash balance and premium margin profile.”

My View

Its shares, at 186p, continue to look to be totally undervalued, and they are destined to break the 200p barrier within the next month, leading up to the 2025 Finals being announced on Tuesday, 10th March.

(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)