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Deutsche Bank (ETR:DBKGn) raised its price target on Morgan Sindall Group PLC (MGNS:LN) to GBP46.00 from GBP40.00 on Tuesday, while maintaining a Buy rating on the construction firm’s shares.
The price target increase follows an unscheduled trading update from Morgan Sindall in which the company raised its guidance for the year. Deutsche Bank subsequently upgraded its profit before tax forecasts for the company by 12% to £209 million for 2025 and by 11% to £197 million for 2026.
Deutsche Bank attributed the improved outlook to ongoing momentum in Morgan Sindall’s Fit Out and Construction divisions. The bank now forecasts that group profits this year will exceed last year’s record level by more than 20%.
The investment bank now projects that Morgan Sindall’s Fit Out operating profit will reach £120 million in fiscal year 2025, which is more than 40% above the top end of the company’s target range.
Deutsche Bank’s new price target represents a 15% increase from its previous valuation, with the bank citing "ongoing upgrade momentum" as a key factor in its decision to no longer discount its sum-of-the-parts valuation for the company.
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