Galliford Try Holdings PLC (LSE:GFRD) is quietly becoming one of the most reliable small-cap stories in the market.
The construction group has impressed again with a trading update ahead of full-year results on 17 September, prompting analysts at Panmure Liberum to raise earnings forecasts for both this year and next.
In response, the broker has increased its price target from 480p to 540p and reiterated its 'buy' rating.
The rationale is clear: not only are margins rising, but earnings momentum has been consistently positive since last autumn. Order books are growing, contracts are diversified, and 90% of next year's revenues are already in the bag.
Joe Brent, lead analyst at the firm, notes: “The market is attributing insufficient value to the Building and Infrastructure businesses, which is unjustified given management has returned the business to profitability while implementing a strict low-risk strategy.”
Panmure highlights the group’s positioning in areas of increased government spending, particularly in defence, healthcare and transport.
With £4.1 billion in the order book and an average contract size at £18.5 million, the model is built on breadth rather than blockbusters. It is a formula that appears to be working.
Elsewhere in Panmure's 'steady compounders' portfolio, Burberry Group PLC (LSE:BRBY) continues to attract interest, helped by a solid run of earnings upgrades and a likely return to the FTSE 100.
Panmure’s internal screens show the brand in the top 5% globally for relative earnings revisions, in contrast to the downgrades seen across the broader European luxury sector.
Shares are up nearly 28% since Panmure first turned bullish, and index tracker demand is expected to rise sharply as the promotion takes effect.
Meanwhile, Euronext posted record revenues in the second quarter, up 13% year-on-year to €465.8m.
With momentum strong in non-trading segments such as data and capital markets, and cost guidance unchanged despite under-running in the first half, analysts see room for earnings upgrades ahead of Q3 results in November.
The company’s conservative full-year targets now look ripe for revision.
Taken together, these are three companies in very different sectors, but all benefiting from consistent execution and low investor expectations. In a jittery macro backdrop, that may be exactly the combination the market wants.