Liberum nudges up target price on Speedy Hire

Analysts at Liberum nudged up their target price on construction tools and equipment hire firmn Speedy Hire from 82.0p to 90.0p on Tuesday, stating the group's strong balance sheet had boosted its outlook.

FTSE All-Share

4,449.61

13:14 24/12/24

n/a

FTSE Small Cap

6,846.22

12:49 24/12/24

n/a

Speedy Hire

28.00p

12:30 24/12/24

-0.18%

-0.05p

Support Services

10,551.01

12:54 24/12/24

0.34%

35.43

Liberum said Speedy's March results were 6% better than it had expected, driven by stronger than expected margins.

The broker also highlighted that Speedy has continued to outperform the market helped by superior service and continuing to win back smaller customers.

"Speedy should benefit from the favourable construction outlook, boosted by market outperformance and options from its strengthened balance sheet," said Liberum, which also reiterated its 'buy' rating on the stock.

"We see upside to our 90.0p target, set using ROCE/WACC, as returns improve and capital is redeployed."