This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Potential for shares to rally back to early June highs. May trading update in-line with full-year expectations and guidance, on track for industry standard margins in second half of the year. Any new contract awards could boost the share price as could positive results n the middle of next month.
Risks to Balfour Beatty shares include the outsourcing sector still having a bad name after the Carillion collapse. Barclays recently started coverage of 3 outsourcers, including Balfour, but sees better value in peers Keller and Kier.
Consensus is Bullish with 60% of brokers saying Buy and only 10% Sell. 89% of broker price targets suggest upside from current levels. The share price bounce and breakout could encourage upgrades from the 30% of Neutrals. The average broker valuation of 335p is above our short-term target of re-challenging June highs.
Next Event: Half year Results, 15 Aug
Latest Broker 12-Month Consensus: 60% Buy, 30% Hold, 10% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 4.4 | -3.8 | 7.8 | -3.2 | 9.4 | 44.2 | 32.3 | 33.2 | 32.6 |
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Prepared by Michael van Dulken, Head of Research