Deutsche Bank raises target price on Polypipe

Analysts at Deutsche Bank raised their target price on Polypipe from 561.0p to 602.0p on Wednesday after the group raised 2020 underlying earnings guidance once again.

Deutsche highlighted that Polypipe's move came as the ink was "barely dry" on its positive December update and had led it to move its full-year underlying earnings forecasts to £42.0m from £40.0m.

The German bank also acknowledged Polypipe's bolt-on acquisition of Nu-Heat, an underfloor heating specialist based in Devon, and raised its 2021 and 2022 underlying earnings estimates by roughly 7%.

"We see recent share price weakness as an excellent opportunity for those seeking exposure to a company with a strong track record," said Deutsche, which also reiterated its 'buy' rating on the stock.