Keller Group PLC (LSE:KLR) shares fell 4.2% on Thursday morning after a downgrade from Deutsche Bank, which also cut its share price target.
Actions by the geotechnical specialist contractor's management over the past five years have contributed to an impressive transformation in financial metrics, resulting in the share price doubling since late 2023.
However, said analyst Jonathan Coubrough, group profits fell double digits in the second half of 2024, and guidance for a return to a normal H2-weighting this year "implies a further fall" in the first half of this year, before requiring high growth in the second half to meet consensus forecasts.
He cut his recommendation to 'hold' from 'buy' and his price target to 1660p from 1800p, with the shares last closing at 1434p, saying he felt the investment case "has played out, for now".