RE: Berenberg and Peel Hunt raise target prices15 May 2024 08:57
More re Berenberg's increased 1200p target price:
Https://citywire.com/investment-trust-insider/news/expert-view-currys-greggs-renewi-headlam-and-bioventix/a2442398?page=3
"‘Buy’ high quality engineer Renew, says Berenberg
Renew (RNWH), the AIM-listed engineering services group, can continue the momentum it has built in the past six months given its ‘high-quality proposition’, says Berenberg.
Analyst James Bayliss maintained a ‘buy’ recommendation but lifted his target price from £10 to £12 as the shares gained 2.4%, or 24p, to £10.26, valuing the company at £812m.
The six months to 31 March ‘reflected another record performance’, with group revenue up 17.2% at £552.8m and operating profit also 17% higher at £33.1m, ‘both driven by strong demand and performance across all end-markets and the group’s high-quality, low-risk business model’.
Bayliss said net cash of £42.5m leaves the group ‘well placed for further organic and inorganic investment, while strong momentum in the first half has carried through to the start of the second half’.
Management is continuing to tender for and win new contracts and so Bayliss ‘sees no reason that this momentum cannot continue’ and he upgraded his earnings forecasts by 4% for full-year 2024.
‘We move our price target to £12 to reflect Renew’s continued momentum and its high-quality proposition,’ he said."