Reaffirming Buy: Strong U.S. Galvanizing Growth and Accretive Data-Centre Deals Offset U.K. Weakness

Jefferies analyst David Farrell maintained a Buy rating on Hill & Smith Holdings today and set a price target of p2,760.00.

David Farrell has given his Buy rating due to a combination of factors, including results that slightly exceeded market expectations and improving organic growth momentum. He highlights particularly strong performance in the U.S. galvanizing operations, where revenues advanced at a double‑digit rate, and notes that margins have improved enough to nudge EBITA and EPS modestly above consensus.

He also points to renewed acquisition activity after a pause, with two data‑centre‑oriented deals expected to add to earnings and secured at what he views as reasonable valuations. While he acknowledges ongoing weakness in U.K. Engineered Solutions and macro uncertainty, he underscores management’s confidence in the U.S. platform through planned capital investment and sees a solid pipeline of both organic and M&A opportunities, supporting his positive stance on the shares.

According to TipRanks, Farrell is a 5-star analyst with an average return of 10.9% and a 67.65% success rate. Farrell covers the Industrials sector, focusing on stocks such as FLSmidth & Co. A/S, Chemring, and Metso Outotec.