Consensus too conservative on Ibstock, Barclays says

Consensus is too conservative on Ibstock, analysts at Barclays said, reiterating their 'overweight' recommendation on the shares with an improved target price of 285.0p.

To make their case, analysts Pierre Rousseau and Nabil Ahmed pointed to strong new build activity and a better than initially expected price/cost differential in Britain.

"Beyond the superior industry features (tight supply-demand balance, industry discipline and unprecedented public support), Ibstock has very promising development projects which should all address attractive market opportunities and enhance profitability," they added.

On the basis of the above, they raised their 2017 to 2019 estimates for the company's earnings before interest, taxes, depreciation and amortisation.

-- More to follow --