Jefferies reiterates ‘buy’ on discounted Tyman
An improvement in the construction sector bodes well for building products manufacturer Tyman (TYMN), says Jefferies.
Analyst Vanessa Jeffriess reiterated her ‘buy’ recommendation and target price of 340p on the stock, which dropped 3.8% to close at 195p on Friday.
‘Macro data remains soft but there was a month-on-month improvement in the relevant construction PMIs,’ said Jeffriess, noting the return to growth in UK construction in September according to the widely-watched purchasing managers’ index.
‘We continue to see near-term end-market concern as priced in.’
There is also momentum in the energy efficiency theme which she said was ‘a key structural growth driver for Tyman’.
‘At 6.1 times full-year 2023 price-to-earnings, Tyman is trading at a 28% discount to our building products peer group and 65% to the UK industrials sector,’ she said.