Galliford Try Holdings PLC's (LSE:GFRD) recent prelims have strengthened its momentum, with analysts from Panmure-Liberum highlighting the company’s progress towards its ambitious targets for 2030.
The construction group’s disciplined approach and robust balance sheet are seen as key factors in achieving these long-term goals, with estimates suggesting earnings per share (EPS) could triple by 2030, reaching between 50p and 65p, compared to current levels.
Analysts also noted that Galliford’s average cash holdings for 2023, combined with its public-private partnerships (PPP), amount to 208p per share.
This, they argue, shows the market is undervaluing the company's core trading operations, given its current share price of 326p.
While the potential impacts of the Infrastructure and Projects Authority's ISG report and the upcoming October Budget create some uncertainty, Panmure-Liberum believes these developments could ultimately benefit Galliford.
Galliford Try’s high cash reserves, with £155 million in net cash at the financial year-end, also position the company well for potential acquisitions, further boosting its growth prospects.
PL rates the shares 'buy' with a target price of 415p. "The market is attributing insufficient value to the Building and Infrastructure businesses, which is unjustified given scope for revenue growth and margin progress in a relatively low-risk way," the boutique investment bank told investors.