Shares in Keller Group PLC (LSE:KLR) were given a lift after Deutsche Bank suggested the de-rating in the shares was "overdone", following a 22% decline from the highs last autumn.
The bank's rating was upgraded to 'buy' from 'hold', reversing a downgrade in early July, with target price unchanged at 1660p, compared to the last close at 1,310p.
Interims from the ground engineer earlier this month showed better than expected profits, driven by better margins, and the shares have fallen.
"In our view, this has de-risked current year consensus," wrote analyst Jonathan Coubrough, who pointed out that comparatives with last year will ease in the second half and the order book sits at a record level.
The decline in the shares means they are now available at just 6 times earnings, close to historic lows.
He forecasts the group will be in net cash for the first time by year end, underpinning the 9% total distribution yield.
"Keller is the global leader in ground engineering," he noted, with diversified sector exposure across infrastructure (33% of revenues), power/ industrial (27%), residential (21%), and commercial (19%).
North America contributes over 70% of group profits, where tendering and pricing remain strong, the analyst said, supported by massive data centre build-out activity.
The group has headroom within its leverage target to fund M&A and/or continue returning surplus capital through buybacks, he added.