Jefferies upgrades Wood Group to 'hold'

Jefferies upgraded Wood Group on Monday to ‘hold’ from ‘underperform’ in the absence of any incremental specific company announcements to change its valuation.

"We know results are coming. We know a sale of Built Environment is planned. What is unknown is the outcome of both, with material stock implications either way," Jefferies said.

"Ahead of these events and having traded down close to our 150p/share price target and in the absence of new company information, we move to a hold rating."

Jefferies said its unchanged price target is based on proforma Wood Group estimates assuming a $1.875bn sale of the Built Environment business.

"Those estimates also assume no further cash exception write-downs other than have been already disclosed."

Wood Group said on Monday that its full-year results remain line with the guidance given in January and that the exceptional charge related to the Aegis Poland contract remains at around $100m.

The company, which had already announced in February that its annual results would be delayed due to an external review, said the results will now be published on 20 April.

At 1305 BST, the shares were up 9.8% at 170p.