Galliford Try Holdings PLC (LSE:GFRD) shares offer around 60% upside, according to analysts at broker Liberum Capital, who reiterated a price target of 270p on the company on the back of today's trading update.
The construction firm's half-year statement guided to trading being in line with expectations, with the company saying it has been able to manage the challenging economic conditions effectively "with no material impact on trading", while its order book nudged up to £3.5bn from £3.4bn.
Analyst Joe Brent noted that Galliford Try's investments plus average cash in the first half totalled 201p per share, compared to a share price that closed yesterday at 165.4p.
The analyst is forecasting that the company's first-half earnings per share will come in at 6.5p, representing a 39% weighting to the first six months of the year, with a full-year earnings estimate of 16.7p.
However, the impact of new acquisitions has led to the Liberum analyst cutting his average net cash estimate for the company from £172mln to £160mln, noting that there is a £15mln share buy-back ongoing.
"The order book remains strong and has nudged up from the FY 22 level of £3.4bn to £3.5bn. The pipeline is strong, conversion is a little slow, but the strong outlook for the UK public sector spend remains intact and management can be selective," the analyst concluded.