Analysts at Shore Capital say they are “distinctly impressed” by Brickability Group PLC (AIM:BRCK)’s underlying strengths and “growth prospects”.
Since its IPO in August 2019, Brickability shares have gained 53% to 104.3p, yet it still trades on a price-earnings ratio of 14.1x for full-year 2022, Shore highlighted in a new note.
The bricks and roofing materials supplier and distributor have made 13 acquisitions in the last two years, with one of its key assets being its relationship with national and regional SME housebuilders.
Shore described the HBS acquisition as “extremely savvy,” given that carbon dioxide emissions must be cut by 31% in new builds from July 2022.
Demand for HBS’ solar panels, inverters, and batteries could surge in coming years with solar panel installations likely to be one of the leading techniques equipped to slash emissions.
The Shore Cap note followed a conversation between the broker’s analysts and Brickability’s chief executive Alan Simpson and chief financial officer Mike Gant, after a trading update released last Wednesday.