Hill & Smith Holdings (HILS – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst David Farrell from Jefferies reiterated a Buy rating on the stock and has a p2,540.00 price target.
David Farrell’s rating is based on the recent performance and strategic direction of Hill & Smith Holdings. The company exceeded expectations with its FY24 results, prompting an upward revision of the FY25 forecast for EBITA and EPS by 2% and 1%, respectively. This positive adjustment reflects confidence in the company’s ability to capitalize on growth opportunities under the new CEO’s strategic focus.
Farrell appreciates the emphasis on achieving consistent organic revenue growth of 5%-7%, which is seen as a crucial factor for re-rating the stock. This target surpasses the consensus estimates for FY25 and FY26, which are at 3.0% and 2.7%, respectively. The commitment to this growth trajectory underpins the Buy rating, as it suggests a promising outlook for the company’s financial performance.
In another report released on March 13, Deutsche Bank also maintained a Buy rating on the stock with a £25.50 price target.