Broker Panmure Liberum has upgraded its target price on Balfour Beatty plc (LSE:BBY) following the construction service company’s latest interim results.
Analysts highlighted that Balfour’s 40% increase in ‘awarded but not contracted’ deals, referring to projects that it has been selected or approved to undertake but has not yet formally signed a contract for, “points to exciting growth”.
Second, the company's operating cash flow target of £364 million indicates strong ambition.
Additionally, shareholder returns are projected to reach approximately £160 million for the fiscal year 2024, with more news expected in December, which could positively impact the share price.
Other factors include the cumulative net distribution from the infrastructure portfolio since 2014, equating to 63% of the market capitalisation.
“UK margins are still below peers, leaving potential upside,” Panmure added.
Panmure upped its target price on Balfour shares from 475p to 500p against a 413p publication price.