Berenberg lowers target price on Tyman

Berenberg said Tyman had delivered a strong performance in 2021, with the benefits of buoyant end-markets set against a challenging cost environment and supply-chain disruption.

The German bank stated pricing changes had driven upgrades to its revenue forecasts for Tyman, but opted to reduce its margin forecasts to reflect continuing increases in input costs.

"While our price target falls as a result, we still think that Tyman is an inexpensive (10x FY22E) way to gain exposure to residential and commercial construction, with potential upside optionality from M&A," said Berenberg.

Despite the downgrade, Berenberg hiked its 2022-24 revenue forecasts for the business by 8%,9% %10%, respectively, and reiterated its 'buy' rating on the stock.