There are better ways to play US construction than Keller Group, Berenberg says
Are you looking at Keller Group as a play on US construction? Look elsewhere, said analysts at Berenberg.
Construction & Materials
12,064.97
16:29 27/12/24
FTSE 250
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FTSE 350
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FTSE All-Share
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Keller Group
1,450.00p
16:40 27/12/24
Despite the ground engineering specialist's "solid" first half numbers, the German broker expected steel prices to remain high, thus weighing on its US Suncoast division's margins.
Furthermore, adjusted margins in the group's EMEA division had shrunk by 160 basis points, while in Asia Pacific the group was only just breaking even, despite its "strong" performance in Australia during the period.
But above all, the analysts saw "limited" catalysts at present.
So while Berenberg did up its target price for the shares from 925.0p to 1,150.0p, in order to reflect the latest movements in foreign exchange markets and the company's purchase of its Moretrench unit, it told clients that "there are better ways to play US construction".