Renew Holdings Share Price (RNWH)

From today's news wires - I believe 1150p is the highest price target yet:

"Deutsche Bank starts Renew with 'buy' - price target 1,150 pence"

New all-time highs again.

Peel Hunt have raised their price target to 1050p, but with material upside potential in a 19 page note.

Their upside model incorporating (1) higher organic growth than their conservative forecasts and (2) acquisitions from the cash pile, would deliver 91p EPS to Sept'26. This would certainly support a share price of 1500p and possibly 1700p-1800p imo.

They summarise:

"Momentum and visibility drives TP increase

• Time to revisit – Ahead of the 1H24 results (14 May), we revisit the powerful investment case and update our M&A/blue sky scenarios.

• Upside risk – We retain estimates across the horizon, but see upside risk building, given profitable market share opportunity across key markets.

• Increased target price – Visibility into new regulatory periods, positive drivers and the M&A opportunity lead us to raise our TP from 950p to 1,050p.

We believe that Renew’s strategic focus on developing its leading positions across infrastructure-led markets, through its operationally-led competitive advantages, leaves it well-positioned to sustain attractive, cash compounding growth. The shares remain undervalued, in our view, given the quality of earnings and both the organic and acquisitive opportunities. We retain our Buy rating."

"Investment case.

Growth is underpinned by consistent cash generation, leading to compounding free cash flows. We look for FY24E net cash of £47m, providing management with attractive capital allocation options. We expect the M&A pipeline to be reasonably active with management remaining disciplined (we note the two small transactions already announced this financial year). We believe that under this leading management team, Renew remains well positioned to continue to deliver attractive, long-term shareholder returns. A better appreciation of these opportunities has supported a deserved rerating, but the September 2025E PE of 14.2x and FCF yield of 7% still fails to reflect both the organic and inorganic opportunities and the synergies that both drivers can bring to Renew, in our view. Our target price implies 15.9x FY25E EPS."

Great finish - in particular a large £383,000 buy of 39,528 shares at 968p reported after the close.

I'd get that money up front from Thames Water! ;-)

QTS have won substantial new contracts with Network Rail:

Https://www.qtsgroup.com/qts-wins-north-west-and-central-capital-delivery-works/

"QTS Group is among the winners of Network Rail’s nearly £2bn capital works delivery frameworks for CP7 in the North West and Central region.

The leading railway contractor has won Civil Engineering Lot B (Renewals design and build) and Lot C (Renewals build only) in the North West and, covering the entire North West & Central region, Civil Engineering Lot D (Reactive) with On-call provision."

And J Browne have won further work with Thames Water.

Https://www.linkedin.com/posts/j-browne-construction-ltd_engineering-infrastructure-water-activity-7186633615919710210-YZyY?utm_source=share&utm_medium=member_android

"We are pleased to announce that Browne has been awarded the Surbiton trunk mains renewal works by Thames Water as part of the wider FA1488 PROG2011 Trunk Mains Programme"