Leading UK brick distributor Brickability Group PLC (AIM:BRCK) is “reassuring in uncertain times” following Wednesday’s encouraging earnings call, according to analysts at Cenkos Securities.
“Yesterday’s trading statement provides some reassurance in the resilience of Brickability’s operating model,” said research director Andrew Gibb at Cenkos of the AIM-quoted company.
Gibb added: “Underlying revenue growth of 10% and a strong increase in EBITDA underlines this. The outlook remains cognisant of the uncertain macro backdrop and the potential impact on the housebuilding sector, but the diversity of its product mix should help to offset some of these headwinds.”
Despite macro concerns, “we believe that a lot of the bad news is already discounted, and it was therefore no surprise to see some relief in the share price following yesterday’s reassuring update,” said Gibb.
“Recent acquisitions and underlying growth mean the group is entering the second half with some clear momentum and visibility and longer term, its growth strategy looks well placed.”
Cenkos has therefore maintained its ‘buy’ BRCK forecast, underscored by a 52-week price range of 72p and 109p.