Barclays upgrades Breedon Group to 'overweight'

23rd Feb 2024 08:15

(Sharecast News) - Barclays upgraded construction materials company Breedon Group on Friday to 'overweight' from 'equalweight' and hiked the price target to 450p from 380p.

The bank said it expects 2024 to represent a trough year for volumes and sees scope for margin upside supported by both a residential-led volume recovery from the second half and improved price/cost.

"With the balance sheet providing optionality and the stock on close to a trough price-to-earnings multiple, we see this as a valuation opportunity and upgrade to OW," it said.

At 0835 GMT, the shares were up 0.4% at 370p.