Galliford Try Holdings PLC's (LSE:GFRD) latest revenue beat is proof that the London-listed contractor is currently undervalued, according to City analysts.
Broker Shore Capital Markets raised its pre-tax profit forecast from £30.7 million to £34 million, projecting a 15% increase in earnings per share to 24.7p.
“In our view, the shares remain undervalued on 10.9x Jun 2026E EPS given the momentum and positive outlook,” said Shore Cap analysts, who gave the stock a buy rating with a 350p price target.
Panmure Liberum reaffirmed its target price for Galliford Try shares at a bullish 415p, highlighting that its fully diluted EPS came in 21% ahead of its previous estimates.
The increase in EPS was driven by strong operational results and a favourable 15% tax rate, said Panmure's analysts.
While maintaining its pre-tax profit estimates, Panmure Liberum raised its 2025 and 2026 EPS forecasts by 3% and 5%, respectively, to account for the company's newly announced £10 million share buyback.
Panmure Liberum sees significant growth potential for Galliford Try, with scenario analysis suggesting 2030 EPS could triple from 2023 levels, ranging from 50p to 65p.
Galliford Try shares added 4% to 312p on Thursday.