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Investing.com - Deutsche Bank (ETR:DBKGn) downgraded Keller Group plc (LON:KLR) (OTC:KLRGF) from Buy to Hold and lowered its price target to GBP16.60 from GBP18.00.
The downgrade follows an impressive transformation in Keller’s financial metrics over the past five years, which contributed to the company’s share price doubling since late 2023.
Deutsche Bank noted that Keller achieved a 7% FY24 EBIT margin, which was 40% above its 10-year average, while its 28% ROCE was nearly double its historical average.
Despite these improvements, the bank expressed concern that group profits fell by double digits in H2-24, with guidance suggesting a further year-over-year decline in H1-25.
The outlook indicates Keller would require high growth in the second half of 2025 to meet full-year consensus, prompting Deutsche Bank’s more cautious stance on the construction engineering company.
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