Cannacord Genuity upgrades Marshalls to 'hold', expects outperformance

They labelled the latest set of results from the manufacturer of natural stone and concrete hard landscaping products as "impressive", while highlighting its cash conversion and "very high" return on capital employed.

Yes, macro uncertainties had re-emerged, and their profit forecasts could prove optimistic if the COVID-19 coronavirus "takes hold and severely disrupts the UK economy", they said, but they judged the group's busines model and balance sheet to be "strong"

And thanks to a continued focus on higher growth segments and organic investments to improve its operating performance, they forecast that the company would ontinue to outperform the wider UK construction market.

"The share price has recently fallen sharply and consequently with valuation looking less stretched, we upgrade our rating from a Sell to HOLD with a price target of 700p (from 710p).

"We believe the shares deserve to sit at a significant premium to the sector average given the Group's strong financial position and track record recently."