Analysts at Berenberg lowered their target price on construction firm Tyman from 500.0p to 420.0p on Friday but said the group had remained “resilient under pressure”.
Berenberg said Tyman had delivered a strong performance in 2021, with the benefits of buoyant end-markets set against a challenging cost environment and supply-chain disruption.
The German bank stated pricing changes had driven upgrades to its revenue forecasts for Tyman, but opted to reduce its margin forecasts to reflect continuing increases in input costs.
“While our price target falls as a result, we still think that Tyman is an inexpensive (10x FY22E) way to gain exposure to residential and commercial construction, with potential upside optionality from M&A,” said Berenberg.
Despite the downgrade, Berenberg hiked its 2022-24 revenue forecasts for the business by 8%,9% %10%, respectively, and reiterated its ‘buy’ rating on the stock.
Barclays initiated coverage of Deliveroo on Friday at ‘equalweight’ with a 165.0p price target.
The bank said it likes many parts of the Deliveroo story: grocery positioning, Plus subscription, London market share, sustainability of post-pandemic growth, incentivised founder-led team and the broader customer proposition.
“We believe there is value. So why initiate at equalweight? Clear catalysts are needed to push ‘concept’ stocks right now.
“All three Euro food delivery names are cheap and our ratings relative. For Deliveroo, we are slightly below consensus EBITDA in ’22E and ’23E.
“And, although the asset might well be strategic at some point, it isn’t our base case that Deliveroo-specific M&A happens near term.”
