Morgan Sindall Group PLC (LSE:MGNS) remained a 'buy' at Deutsche Bank, which increased its price target to 5,500p from 5,000p following an upgrade to 2026 guidance.
It said a short trading update signalled increased confidence in the conversion of opportunities within the Fit Out division, improving visibility for the year ahead.
As a result, the company upgraded 2026 guidance for Fit Out earnings before interest and tax, or EBIT, to significantly above £100 million.
All other divisions were guided in line with previous expectations.
Deutsche retained its 2025 forecasts but increased its 2026 profit before tax forecast by 10% to £216 million.
The broker said performance across all divisions in 2025 had been strong, with full-year guidance reiterated ahead of results due on 25 February.
The trading update also disclosed that the 2025 group order book and preferred bidder book rose 17% year on year to £19 billion.
Deutsche noted that the inclusion of the preferred bidder book, which comprises projects where Morgan Sindall has been selected but contracts are not yet finalised, reflected management’s high confidence in converting this pipeline into secured workload.
The bank viewed the combination of upgraded Fit Out guidance and strong order book momentum as supportive of its positive stance.
In afternoon trading, the shares were up 3% at 5,462p.