Panmure has raised its price target for Galliford Try Holdings PLC (LSE:GFRD) to 540p from 480p after the company’s latest trading update beat expectations.
The construction group is now expected to deliver earnings per share (EPS) 6% higher for 2025 and 7% higher for 2026, driven by improved profit margins.
Panmure also lifted its forecast for the company’s average net cash position to £179 million, reflecting tight control of working capital, the money tied up in day-to-day operations.
The firm’s order book has grown from £3.8 billion last year to £4.1 billion, showing strength across all business areas. In building projects, education, defence, and custodial contracts are particularly strong.
The infrastructure division is boosted by promising opportunities in the water sector.
Panmure sees earnings per share tripling by 2030 and maintains its 'buy' recommendation, reflecting confidence in Galliford Try’s growth prospects.
The stock rose 3% 432.77p. Peel Hunt says Galliford Try shares offer excellent value, trading at 13 times expected earnings per share for 2026.
This translates to an implied enterprise value to earnings before interest, tax, and amortisation (EV/EBITA) multiple of six times for its operations, suggesting the stock is attractively priced relative to its profits.
Peel reckons the shares are worth 500p, while Cavendish values them at 527p.