- Canaccord Genuity Group Inc.
- 09 July 2025 09:28:54
Source: Sharecast
The bank said that in its initiation in October 2024, while it was positive on the mid-term outlook at Genuit, it thought the relative re-rating in the shares had gone too far, especially given JPM’s more cautious view on the pace of a recovery in end markets.
Since then, the shares have de-rated around 20% relative to JPM’s coverage and now trade at close to their widest discount in a decade to other residential-exposed names in the bank’s coverage.
"With forecasts and end markets having stabilised, and some green shoots appearing, particularly in new build resi, we now see risk/ reward as more favourable; and in the mid-term, see more than 30% earnings upside to our forecasts (pre any M&A)," JPM said.
Genuit is a manufacturer of plastic piping systems for use in the residential, commercial, civils and infrastructure sectors.
At 0920 BST, the shares were up 6.6% at 403.50p.