Yes, somewhat reassuring. |
Optimistic TU even if it is more about future than current performance, broadly in line. |
What's going on here now? |
Labour want more housing, but they don't want the companies that build it or supply materials to make any money from it. Interesting take on economics from Reeve... |
So much for that little rise, suspect the new Budget charges are going to hit the profitability. |
M&A-driven earnings accretion? What sort of M&A do they envisage I wonder? |
That's a two year high now; keep slapping those bricks down guys! |
 Jefferies raises Ibstock to ’buy’ (hold) - price target 251 (200) pence
Ibstock gained as Jefferies upgraded the shares to ‘buy’ from ‘hold’ "given the current compelling demand-supply dynamic in the UK brick sector". It applied the same upgrade to Forterra.
The bank said it now sees a clear path to return to prior peak EBITDA (i.e. 2022) by 2027, underpinned by a housebuilding-led recovery but also sufficient spare capacity to fully capture this growth.
"This suggests more than 70% upside from 2024 profit levels, offering significantly more upside than at UK building product peers if they too were to return to 2022 levels from 2024 (less than 40%)," it said.
"This uplift is driven by our expectations of a strong demand recovery underpinned by an improving housing market (we forecast UK brick demand to grow circa +35% over 2024-27, after a circa 40% fall over 2022-24).
"However, with domestic capacity utilisation currently at c.60%, we are in a unique position where both main players have the ability to fully capture recovering demand (as opposed to driving higher imports due to capacity constraints as has been the case for much of the past decade)."
Jefferies said that beyond earnings recovery, robust cash generation and deleveraging offer another leg to the investment case, with ample spare cash for M&A and/ or extra returns.
The bank lifted its price target on Ibstock to 251p from 200p and said it was its preferred pick "given its greater liquidity and higher potential for M&A-driven earnings accretion to boost its still nascent Futures division". |
I was suspecting might be more than the "In line" TU, but it seems to be saying that they are well positioned IF demand increases as is expected. I guess this is never going to be a company that suddenly gets a gamechanging new product that is going to double profits overnight. |
Any thoughts re: the trading update? |
* MSLH today |
Thats a suspiciously strong share price rise this week with TU tomorrow, almost as if something has leaked... |
TU Thursday. |
Suspect a 20p rise to an 18 month high is more about politics than one broker note. |
Ah, here you go..
RBC starts Ibstock with 'outperform' - price target 200 pence |
Labour Party - housebuilding promise ? |
Any reason for the encouraging signs? |
Might reach the original flotation price soon at this rate. |
Good to see some interest in the share on here.
Do we know know what driven the price higher this week, apart from the Wad Collector's judgement with regard to this week's election announcement? |
1 yr high today , good to see a bit of share price recovery but still below the float price from 9 yrs ago. I see Labour are talking about house building , maybe this will help the sector recovery, even if never happens in the long run. |
Xd 3.6p next week. |
No real surprise for me on this morning's news which mirrored the outlook statement in the Prelims except the weather.
They commented on the state of the UK residential market but I could not find on their website the percentage of their sales which is to this sector.In the Prelims presentation they had pictures of office blocks featuring their products. |
In line with expectations. About as good as it gets I suppose. Dividend cut. No immediate cavalry on the horizon but the management IMO are doing a pretty good job of managing the situation they, the sector and indeed the country are in. I look forward (sort of) to the podcast.
Perhaps more worrying is the whole of the stock market. It looks like it could be turning into a full blown crisis. Hunts more socialist than capitalist as indeed are the majority of the incompetent Tories. His cutting of CG allowance is straight out of the socialists handbook and he says he is trying to help drive up investment. I see Arthur Laffer thinks hes a fool too |
Register for real-time alerts, custom portfolio, and market movers
Hot Features
Premium
