According to Peel Hunt, the construction and regeneration group Morgan Sindall (LON:MGNS) is recovering faster than expected and proving its quality,
PH analyst Andrew Nussey retained his ‘buy’ recommendation and target price of 1500p on the shares, which moved up 5% to 1223p after the group's positive trading update. It delivered a surprise dividend and earnings per share uplift.
There is now an expectation that pre-tax profits this year will come in at the top end of the previous £50-£60m guidance.
‘Morgan Sindall is recovering more quickly than we anticipated, but also in a controlled manner with strengthening visibility of margin and cash,’ said Nussey.
‘The quality is evident. The balance sheet is sector leading and we confidently retain our “buy” recommendation.’
