Keller Group Plc (LON:KLR) has been tipped to rise as much as 54% by stockbroker Liberum Capital, which has started its coverage of the UK construction group with a ‘buy’ recommendation.
Liberum’s recommendation comes with a 1,500p price target, compared to the current trading price of 972p.
Lower risk?
Analyst Joe Brent said Keller is ‘different’ to the other UK-listed construction groups, highlighting that it is a leader in the industry and that its ground engineering should grow faster.
He noted that contracts are small and short, making them lower risk, and that they have a ‘high design content’ which is more like a consultant.
“Recent cash flow has been weak, but we expect FCF (free cash flow) to grow to nearly £70m,” he added.