Severfield: Navigating Current Challenges with a Promising Outlook for FY27F

Analyst Andrew Douglas from Jefferies maintained a Buy rating on Severfield (SFR – Research Report) and keeping the price target at p90.00.

Andrew Douglas’s rating is based on a combination of factors that highlight both challenges and opportunities for Severfield. Despite the disappointing trading update and expected significant downgrades for FY25F and FY26F, the company is actively working to address these challenges through management efforts and maintaining cash headroom over the coming years.
While the current market conditions are tougher than anticipated, with tighter pricing and project delays, the outlook for FY27F appears promising with a strong pipeline. This suggests potential for recovery and growth, justifying the Buy rating as Severfield navigates through the current difficulties while positioning itself for future opportunities.