Brickability PLC has got the thumbs up from analysts at Shore Capital, who describe the building materials supplier as offering ‘a holy trinity of value, growth and financial quality’.
Overlooked by the investment community, Shore adds that the group’s ability to spot and execute value-adding acquisitions is underappreciated.
In particular, the acquisition of Taylor Maxwell in 2021 has created a UK powerhouse in brick distribution, increasing Brickability’s buying power with virtually zero overlaps within the customer base.
A forward earnings multiple of ten is too low, argues the broker, given the M&A opportunities and sustainable 20% return on equity.
Shore has given the group a ‘buy’ rating and 130p target price with the next full-year results in June to underline the potential.
Shares were unchanged at 90p.