Buy Rating on Breedon: Strong Cash Generation, Underappreciated Medium-Term Growth, and Attractive Valuation Upside

Morgan Stanley analyst Cedar Ekblom has maintained their bullish stance on BREE stock, giving a Buy rating on February 23.

Cedar Ekblom has given his Buy rating due to a combination of factors including solid current performance and underappreciated medium‑term growth. Breedon’s FY25 revenue and underlying EBITDA are growing in line with expectations, while cash generation exceeded forecasts thanks to tighter working capital, lower capex and reduced cash tax and interest, leaving leverage at a comfortable level.

At the same time, management highlights robust demand prospects in Ireland and the U.S. driven by infrastructure and housing investment, which more than offset softness in Great Britain’s residential market. With consensus assuming only modest EBITDA growth for FY26, Ekblom sees realistic upside from bolt‑on acquisitions and resilient aggregate pricing, and views the current valuation — roughly 13x reported EPS and under 10x on an underlying basis — as attractive relative to these fundamentals.

Ekblom covers the Basic Materials sector, focusing on stocks such as Breedon, Holcim, and Sika AG. According to TipRanks, Ekblom has an average return of 4.1% and a 56.06% success rate on recommended stocks.