In a report released today, Charlie Campbell from Stifel Nicolaus maintained a Buy rating on Grafton, with a price target of p1,175.00.
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Charlie Campbell has given his Buy rating due to a combination of factors that highlight Grafton’s potential for growth and value. The company has demonstrated consistent like-for-like revenue growth, albeit at a slower pace in the second half of the year, which aligns with market expectations. Despite this deceleration, Grafton’s shares are trading at a valuation that is appealing, with a price-to-earnings ratio that is below the 10-year average.
Furthermore, Grafton’s strong balance sheet and proven track record in capital allocation, particularly in expanding its presence in high-growth markets like Ireland and Spain, bolster its investment appeal. The company’s strategic positioning in these regions, coupled with potential recovery in other markets such as the Netherlands, Finland, and the UK, suggests future growth opportunities. Additionally, Grafton’s management is expected to deliver profits in line with market expectations, reinforcing the company’s stability and potential for future success.
In another report released on October 31, RBC Capital also reiterated a Buy rating on the stock with a p1,190.00 price target.