Costain Group – SQC has set a new Target Price of 210p for the shares now at 182p.

Mark Watson-Mitchell – 02.03.2026  

This morning the £489m-capitalised Costain Group (LON:COST) confirmed that it has today returned to the FTSE 250 index for the first time in more than 20 years.

The re-entry comes after years of consistent strong financial performance, building strong positions in growing markets and delivering increasing shareholder returns.

As I reported this Index entry on Thursday of last week, the news was followed by a staggering 14,934,642 shares were traded, some 16 times the daily average volume.

Then on Friday another 8,038,874 changed hands, but with the share price easing from Thursday’s peak of 195p to close at 186.60p.

This morning, they have fallen further to 182p, at which I now set a new Target Price of 210p.

The Business

Costain improves people's lives by creating connected, sustainable infrastructure that enables people and the planet to thrive.

Through the delivery of predictable, best-in-class solutions across the transport, water, energy and defence markets, the group is creating a sustainable future and securing a more prosperous, resilient and decarbonised UK.

Management Comment

CEO Alex Vaughan stated that:

"I am extremely proud of the whole Costain team and the role they have played in achieving Costain's return to the FTSE 250.

This significant milestone follows what has been a sustained period of strong financial performance for the business, with increased profitability, positive cash generation and continued momentum in securing high-quality work across our chosen growth markets.

Our performance is testament to the success of our strategy and the commitment and attitude of our people.

We look forward to continuing our commitment to create further value for all our stakeholders."

Broker's Views

There are some six brokers that closely follow this group, five of whom 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

The group could now gain further investor interest 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 next week.

(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)

(Profile 02.03.26 @ 182p set a Target Price of 210p)