Kier Group PLC (LSE:KIE) shares rose after a bullish pre-close update, with Panmure Liberum saying the construction and infrastructure specialist is in better shape than ever.
The company’s latest figures, covering the twelve months to June 2025, are expected to come in line with forecasts. The broker is pencilling in EBIT (operating profit) growth of 4.1% for the year, showing that momentum is holding up.
The order book is a particular bright spot, up more than 40% in four years. Looking to the future, Kier has already locked in 88% of projected revenues for the next financial year, offering strong visibility on earnings.
Even with around £90 million invested in new property projects over the last three years, the company is on course to move into a net cash position in 2026. That would mean more cash than debt, no small feat in a sector known for heavy borrowing.
Despite all this progress, Kier’s shares are still trading at just nine times next year’s expected earnings, a significant discount to its peers.
Panmure argues this undervalues the group’s transformed balance sheet, strong order book, and future growth potential.
On its numbers, applying the sector’s average valuation suggests more than 60% upside for the shares. As a result, the broker has raised its 12-month target price from 250p to 322p and is sticking with a 'buy' recommendation.
The stock, up 5% in early trade, was flat in the afternoon session at 198.38p.