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(Sharecast News) - Analysts at Berenberg lowered their target price on brick maker Michelmersh from 170p to 150p on Tuesday after the group published its H125 results earlier in the morning.
Michelmersh stated that overall, trading has continued to be "broadly resilient" amid a tough market backdrop, although certain factors have weighed on progress, leaving management to now guide FY25 performance to be in line with FY24.
Berenberg said the key points from Michelmersh's statement were that overall UK despatch volumes have shown some recovery in the period, that pricing, production delays at the Carlton plant and a tough Belgian market had weighed, and that the period ended with 1.5m net cash, continuing to leave the business with a strong balance sheet.
The German bank, which has a 'buy' rating on the stock, updated its numbers post-results and noted a 13-16% reduction in adjusted underlying earnings across the forecast period, moving the price target down.
However, Berenberg said the stock continues to provide operationally geared exposure to a recovery in building material volumes.
Reporting by Iain Gilbert at Sharecast.com
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