Peel Hunt has maintained its buy rating for Galliford Try Holdings PLC (LSE:GFRD) with a target price of 350p after the construction group outlined new growth targets ahead of its Capital Markets Event (CME)
Galliford is aiming for a 15% compound annual growth rate (CAGR) in earnings per share (EPS) and dividends per share (DPS) by 2030.
It is targeting revenues to grow organically to over £2.2 billion by fiscal year 2030, implying a CAGR of approximately 7% from fiscal year 2023 to 2030.
“Management aims to maintain a strong balance sheet and operating cash generation such that a sustainable dividend would be paid at 1.8x cover,” Peel Hunt noted. “We view this as a highly attractive proposition that exceeds our expectations.”
Similarly, Liberum has raised its target price for Galliford Try from 300p to 360p, citing these new financial targets and potential growth in existing and adjacent markets.
Galliford Try is expected to provide further updates on its progress during the scheduled fiscal year 2024 update on 11 July.
Shares were swapping for 274p on Friday afternoon.