Galliford Try Holdings PLC (LSE:GFRD) released a very short update but broker Peel Hunt noted that this implied it was on track for major growth, namely 20%-plus annual growth in earnings and dividends out to 2026.
The company's house broker reiterated its 'buy' rating and 230p share price target, versus the last close at 162p, retaining its profit before tax forecasts for the year to June 2023 of £21mln, below the City consensus of £22mln.
It said this forecast, which equates to an earning per share figure of 15.3p, was "supported by the quality of the order book", noting recent positive contract momentum such as the recent £65mln deal to build a cable factory and the £56mln of public sector wins announced in August.
Although the government has been talking about tightening the purse strings, analyst Andrew Nussey said he sees "limited risk of material disruption from the Autumn Statement [next week]".
He highlighting the strength of the balance sheet strength alongside the "improving profitability and future growth ambitions" and 5.2% dividend yield.
Elsewhere, independent broker Liberum also maintained its earnings estimates, seeing EPS of 16.7p, and its full year average net cash estimate of £172mln.
The broker outlined four key points: "1) We believe material shortages are easing and input costs are stabilising; 2) Targets announced at the FY 21 results suggest £36m of EBIT in 2026, 77% ahead of our FY 23 estimate; 3) There is also still some opportunity with up to £95m claims on old contracts; 4) The pipe-line is strong, conversion is a little slow, and we will hear more from the Chancellor on 17th November."
Liberum's price target is 270p, of which investments and average cash equal 201p.