Berenberg hikes target price on Keller.


Analysts at Berenberg lifted their target price target on geotechnical contractor Keller from 2,550p to 3,150p on Tuesday, after the firm issued a stronger‑than‑expected trading update that prompted a material upgrade to full‑year guidance.

Keller Group

Source: Sharecast

Keller said both revenue and underlying earnings were now expected to finish "materially ahead of current market consensus", previously £3.15bn and £223m, respectively, driven by strong organic momentum and a record £1.9bn order book.

Berenberg said the update underlined robust demand across key markets despite pockets of macro pressure in some regional residential sectors.

The German bank noted that the acceleration in trading momentum since May was entirely organic, with no acquisitions or disposals, and heavily weighted towards the US, where Keller has secured major infrastructure work including the multi‑year I‑40 highway remediation project. Management also highlighted continued margin discipline and a buoyant tendering environment.

Berenberg said North America remained Keller's "primary engine of growth", with strong infrastructure and data‑centre volumes offsetting a slowdown in south Florida's residential market. Europe and the Middle East delivered solid results, supported by strength in Scandinavia and central Europe, while Asia‑Pacific traded in line with expectations as momentum across Australasia helped counter pricing pressure in Australia's foundations market.

The broker added that Keller's strategic focus on high‑growth subsectors such as infrastructure and technology continued to pay off, and that the group's net cash position at the end of FY25 left it with meaningful capital‑allocation flexibility.

Berenberg said Keller now trades on a 10.3x FY26 price-to-earnings ratio, 5.0x EBITDA and 7.4x EBIT.

Reporting by Iain Gilbert at Sharecast.com


ISIN: GB0004866223
Exchange: London Stock Exchange
Sell:
3,252.00 p
Buy:
3,258.00 p
Change: 604.00 ( 22.52 %)
Date:
Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.