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Share Price Reconstruction For Kier Group?

By Spreadex (Connor Campbell)Stock MarketsSep 13, 2018 10:36
uk.investing.com/analysis/kier-group-plc-200203606
Share Price Reconstruction For Kier Group?
By Spreadex (Connor Campbell)   |  Sep 13, 2018 10:36
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Can Kier Group (LON:KIE) reconstruct its stock price following next Thursday’s full year results?

It’s not been the best year to be in the construction and services sector. With the collapse of Carillion kicking off 2018, Kier got off to a wild start; opening at £10.52, January ended up taking 18 month lows of £9.20 and a 3 month peak of £11.62.

Kier Group PLC
Kier Group PLC

It continued to range between £9 and £11 across spring, only to settle into a more consistent decline from early summer onwards following a negative note from analysts at Barclays (LON:BARC). And having hit an £8.80 nadir not seen since late 2012 in mid-August, Kier Group PLC now sits at a current trading price of £9.61, with bearish bets against the company at a 4 year high according to data from IHS Markit Ltd.

Back in July the firm released a pretty important update in advance of next week’s full year reveal. There it announced the launch of an efficiency and streamlining programme, entitled ‘Future Proofing Kier’, and will crucially include ‘the disposal of non-core operations’, with the company’s renewed focus on infrastructure services, buildings, and developments and housing designed to deliver ‘an improvement in operating margins and cash generation’.

As for its financial performance, the firm’s average month-end net debt increased to £375 million, ‘reflecting reduced volumes due to bad weather’ impacting the Construction business, though Kier claimed that volumes had picked back up. The statement went on to say that underlying profit and earnings are forecast to be ‘in line with expectations’.

Whether or not Kier can spark a turnaround next week, then, will be dependent on how investors respond to the expanded details of that ‘Future Proofing’ plan on Thursday.

Kier Group PLC has a consensus rating of ‘Buy’ alongside an average target price of £14.96.

Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

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Share Price Reconstruction For Kier Group?
 

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Share Price Reconstruction For Kier Group?

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