In a report released today, Andrew Douglas from Jefferies reiterated a Buy rating on Severfield, with a price target of p41.00.
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Andrew Douglas has given his Buy rating due to a combination of factors that suggest a positive outlook for Severfield. Despite a challenging fiscal year in 2025, there are indicators of stabilization within the company. The preliminary results for FY25 were mostly in line with expectations, with EBITA slightly exceeding forecasts, although profit before tax and earnings per share were marginally lower. Notably, the company’s net debt position improved, which is a positive sign for its financial health.
Additionally, the order books have shown growth compared to the beginning of April, indicating potential future revenue streams, although the UK markets remain somewhat subdued. Management’s guidance for FY26 remains unchanged, suggesting confidence in the company’s strategic direction and operational stability. These factors combined provide a foundation for the Buy rating, reflecting an expectation of future growth and financial resilience.