Analyst David Farrell of Jefferies maintained a Buy rating on Hill & Smith Holdings, with a price target of p2,530.00.
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David Farrell has given his Buy rating due to a combination of factors that highlight the positive trajectory of Hill & Smith Holdings. The company has demonstrated accelerated organic revenue growth, particularly driven by its US platform businesses, which have shown a significant improvement compared to earlier in the year. This growth, coupled with an increase in order books, supports the management’s unchanged expectations for the fiscal year, indicating stability and potential for continued success.
Additionally, the strategic appointment of Nick Anderson, a well-regarded figure in the industry, as the new Chairman, is expected to bring valuable leadership and insights to the company. While challenges remain, particularly in the UK Engineered Solutions segment, the anticipated commissioning of new transmission and distribution capacity and the potential release of the Road Investment Scheme 3 are seen as future catalysts for growth. Despite the absence of immediate M&A activity, the active pipeline suggests potential opportunities ahead, reinforcing the positive outlook for Hill & Smith Holdings.
Farrell covers the Industrials sector, focusing on stocks such as FLSmidth & Co. A/S, Halma plc, and XP Power. According to TipRanks, Farrell has an average return of 10.1% and a 63.29% success rate on recommended stocks.