Morgan Sindall Group PLC (LON:MGNS) shares bobbed higher on Thursday as the construction group posted positive full-year 2019 results which prompted Peel Hunt to hike its target price to 2,000p from 1,800p and repeat a 'buy' rating on the stock
The FTSE All Share-listed firm reported a 10% rise in profit before tax for the year to 31 December to £88mln, as revenue rose by 3% to £3bn.
In a note to clients, analysts at Peel Hunt noted that the construction firm said its business is “well geared” to meet the increasing demand for affordable housing, urban regeneration and infrastructure and construction investment.
The City broker's analysts said they see upside in all divisions of the group, including upside risk for the fit-out business in spite of its “limited visibility”.
The analysts concluded: “Despite that recent strong outperformance, we believe the shares deserve a higher rating given the sustainability of group earnings, cash performance and income attractions."
In morning trading, shares in Morgan Sindall were around 1% higher at 1,954p.