Skip to main content
  • Register
  • Help
  • Contact us
  • Log out of your HL account

Canaccord Genuity sees 'attractive' shareholder value in Forterra and Ibstock

Tue 19 November 2019 15:13 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Cannacord Genuity initiated coverage of shares in Forterra and Ibstock with 'buy' and 'hold' recommendations, respectively, telling clients their expectation was for both companies to "deliver attractive profitability and returns for the foreseeable future".

In particular, the Canadian broker highlighted their "strong" cash generation and balance sheets, and "relatively attractive" industry dynamics and demand drivers.

Macroeconomic and political were "unusually high" but their underlying strengths, disciplined management and changes within the industry since the last downturn should see them through any downturn.

"UK macro and political risks remain unusually high, but we believe they are strong businesses and structural changes within the industry since the last downturn combined with disciplined management teams and strong balance sheets put them in a better position to manage any potential downturn," they said.

Their valuations meanwhile were "generally unstretched", they said, adding that "over the medium term, we believe both look well positioned to deliver attractive shareholder value."

Analyst Aynsley Lammin placed a target price of 330.0p on shares of Forterra and of 260.0p for those of Ibstock.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More stockbroker tips from ShareCast

    Latest economy and stock market articles