David Farrell, an analyst from Jefferies, maintained the Buy rating on Hill & Smith Holdings. The associated price target remains the same with p2,300.00.
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David Farrell has given his Buy rating due to a combination of factors that suggest a positive outlook for Hill & Smith Holdings. The recent first-quarter results from AZZ, which cover March to April, indicate a favorable performance in their Metal Coatings division, which is relevant to Hill & Smith’s galvanizing activities in the US. This division saw a 6% increase in revenue and a 200 basis point improvement in margins, signaling robust demand and a stable market environment.
Furthermore, AZZ’s management highlighted a strong demand outlook, supported by the passing of significant legislation that is expected to enhance decision-making stability. Hill & Smith’s own reports indicate modest growth in US Galvanizing volumes for the January to April period, despite adverse weather conditions, with a strong exit rate. These factors collectively contribute to a positive assessment of Hill & Smith’s future performance, justifying the Buy rating.