Daiichi Sankyo and Merck report phase 2 trial results for lung cancer drug
Investing.com -- Severfield plc (LON:SFR) issued a resilient trading update at its Annual General Meeting on Tuesday, stating that year-to-date trading has been in line with management expectations.
The structural steel company reported that order books remain largely unchanged since its last market update, with a slight decrease in UK and European orders balanced by growth in its Indian joint venture, which reached a new record level.
Shares of Severfield rose 2.5% after the update.
Management confirmed that full-year expectations remain unchanged, with the company maintaining a "good" financial position and focusing on cash generation. The company has also received the full £20 million insurance recovery.
Analysts at Jefferies maintained their "buy" rating on Severfield shares with a price target of 41.00 pence, representing a 26% upside from the current share price of 32.50 pence.
While the company’s profitability for the current year is heavily weighted toward the second half, this had been previously communicated to investors. Jefferies noted that Severfield holds strong market positions in the UK and Europe, offers broader services than competitors, and possesses strong technical capabilities.
The investment bank also highlighted the value of Severfield’s Indian joint venture, which they believe is not fully reflected in the current share price despite details provided in a recent option agreement announcement with JSSL.
Jefferies views Severfield as an attractive recovery and growth opportunity over the medium term, despite some near-term challenges in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.