Source: Sharecast
Berenberg said Keller remains on track to deliver significant year-on-year profit growth in 2026, in line with consensus expectations, despite ongoing weakness in residential construction markets. Trading has continued to be supported by strong demand from infrastructure and commercial projects in North America, mining activity in Australia and a robust performance across the Nordic region.
The German bank highlighted Keller's record £2.5bn order book, which it said provides unusually strong revenue visibility over the next three to four years, supported in part by the multi-year Interstate 40 project in the US. Keller's diversified exposure across geographies and end markets also helped offset softer conditions in UK construction, weaker US residential demand and delays on certain environmental remediation projects.
Following management's recent medium-term targets, which include organic revenue growth of 5% to 7% and operating margins of around 7%, Berenberg increased its earnings forecasts by between 1% and 5% over the forecast period.
Berenberg also pointed to Keller's strong balance sheet, noting that net debt was expected to remain broadly neutral at year-end and comfortably below management's target leverage range, leaving scope for further bolt-on acquisitions.
Despite the higher valuation, Berenberg maintained its 'buy' rating, arguing that the shares remain attractive given Keller's growth prospects and exposure to major infrastructure spending trends.
Jefferies raised its target price on Bridgepoint to 515p from 485p on Thursday and reiterated its 'buy' recommendation on the stock, arguing that the private markets investor was approaching a multi-year growth phase driven by stronger fundraising, rising fee-related earnings and increasing carried interest generation.
The broker said investors have tended to favour alternative asset managers with a greater reliance on recurring management fees over those with more performance fee exposure, given the perceived predictability of earnings.
However, Jefferies believes Bridgepoint to be well placed to benefit from its ability to generate strong investment returns and return cash to limited partners at a time when liquidity remains constrained across the private markets industry.
In Jefferies' view, Bridgepoint was on the cusp of a broad-based upswing that should support fundraising momentum and fee-related earnings growth, with higher carried interest expected to act as an important catalyst in the near term.
Reporting by Iain Gilbert at Sharecast.com