Broker snap: Everything upgraded at Galliford

2nd Jun 2011 11:29

Peel Hunt has nudged up nearly all of its forecasts for housebuilder and construction firm Galliford Try, saying that the company presents an "interesting proposition: high growth, high yield and no debt.""The company has been dogged by doubts on delivery in housing and fears of a slump in construction - these can now be put to bed," said analyst Robin Hardy.The broker has raised its full year pre-tax profit forecasts from £30m to £35m, after increasing its estimates in housing (by £3m), construction (by £1.2m) and lowering its interest estimate (by £0.8m).The dividend for next year is expected to provide a near-5% return, while the group is likely to be debt-free by June.The broker said that Galliford remains the cheapest housing-related stock and offers a higher rate of growth than its peers. A 'buy' rating is confirmed, while the target price is raised to 596p, from 510p.---BC