Galliford Try Holdings PLC (LSE:GFRD) shares jumped by 7% as a post-close trading statement indicated revenue and pretax profit above the consensus range, helped by more normal trading conditions and the peak in AMP7 water sector work.
Based on the update, broker Panmure Liberum has increased what it said were already top-of-the-range estimates by 3% and 2% for 2024 and 2025
“We maintain our 2024 IAS 17 average net cash estimate of £155 million and the buyback is done for now," said Panmure. “Our scenario analysis suggests a range of 2030 fully diluted EPS of 50p to 65p or triple 2023.”
The broker noted the strength in building, especially across the Health and Custodial, Education and Defence markets.
Panmure added that it sees water as "particularly exciting".
Reflecting the update, the broker has increased its target price from 360p to 415p to reflect the better earnings and cash plus a revised calendar year 2025 P/E of 10.5 times.
Shares rose 19p to 291p, a new five-year high.