Broker snap: Panmure ups numbers for Galliford Try after first-half beat

22nd Feb 2012 11:23

Housebuilding and construction firm Galliford Try surged higher this morning on the back of its interim results, with the rise being helped by Panmure Gordon, which upped its price target for the firm from 581p to 590p.The company reported that pre-tax profit rose to £32.2m for the half year ended December 31st 2011 from £17m the same time a year earlier. Group revenue climbed to £746.8m from £575.9m previously. The group recommended an interim dividend payment of 9p per share, up from 4.5p a year earlier."Interim results from Galliford Try are exceptionally strong and well ahead of expectations. The company has announced a significantly enhanced dividend including a stepped increase for 2012E and a commitment to grow dividends progressively going forward," said Panmure Gordon.As such, the broker has raised its 2012 and 2013 full-year estimates for earnings per share by 5% and 3%, respectively. With the stock remaining the "cheapest in the sector" and offering the highest dividend yield, the broker maintains its buy recommendation.Shares were 11.88% higher at 560.5p in mid-morning trade.BC