In a report released today, Andrew Douglas from Jefferies maintained 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 including Severfield’s better-than-expected interim results for the first half of 2026. The company’s profit before tax and earnings per share have surpassed management’s guidance, and the net debt situation is favorable. Despite challenges in the UK and EU markets, Severfield’s order books, particularly in the Indian joint venture, remain strong, providing confidence in future performance.
Douglas also highlights the effectiveness of Severfield’s new management team, which has made significant strategic hires and is focused on execution. The management’s expectations for the full fiscal year remain unchanged, and there is solid order coverage for the second half of the year. The company’s strategic position and capabilities in the market are seen as unmatched, with potential for recovery and growth in the UK/EU markets and promising prospects in India.