Barclays upgrades Breedon Group to 'overweight'

Barclays upgraded construction materials company Breedon Group on Friday to ‘overweight’ from ‘equalweight’ and hiked the price target to 450p from 380p.

The bank said it expects 2024 to represent a trough year for volumes and sees scope for margin upside supported by both a residential-led volume recovery from the second half and improved price/cost.

"With the balance sheet providing optionality and the stock on close to a trough price-to-earnings multiple, we see this as a valuation opportunity and upgrade to OW," it said.

At 0835 GMT, the shares were up 0.4% at 370p.