Grafton Group's (GFTU) "Buy" Rating Reiterated at Peel Hunt

Key Points

• Peel Hunt reiterated its Buy rating on Grafton Group and set a GBX 1,160 price target, implying about 28.9% upside from the previous close.
• Other analysts remain broadly positive: several firms, including Stifel Nicolaus, Citigroup, Deutsche Bank, and Berenberg, also maintained Buy ratings, giving the stock a consensus Buy view.
• Grafton Group's shares rose to GBX 899.80 in Monday trading, and the company recently approved a share repurchase plan, which can signal management believes the stock is undervalued.

Grafton Group (LON:GFTU - Get Free Report)'s stock had its "buy" rating restated by stock analysts at Peel Hunt in a note issued to investors on Monday,London Stock Exchange reports. They presently have a GBX 1,160 price objective on the stock. Peel Hunt's price target would indicate a potential upside of 28.92% from the stock's previous close.

Other equities analysts have also recently issued reports about the company. Stifel Nicolaus reiterated a "buy" rating and set a GBX 1,175 price target on shares of Grafton Group in a research report on Thursday, March 19th. Citigroup cut their price objective on Grafton Group from £115 to £110 and set a "buy" rating for the company in a report on Friday, June 19th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a GBX 1,275 target price on shares of Grafton Group in a research note on Monday, May 18th. Finally, Berenberg Bank lifted their target price on Grafton Group from GBX 1,000 to GBX 1,150 and gave the stock a "buy" rating in a report on Wednesday, July 8th. Six investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of GBX 2,825.

Grafton Group Stock Performance

Grafton Group stock traded up GBX 22.13 during mid-day trading on Monday, hitting GBX 899.80. 76,263 shares of the company's stock traded hands, compared to its average volume of 6,196,193. The firm has a 50 day moving average price of GBX 858.06 and a 200 day moving average price of GBX 907.25. The company has a quick ratio of 1.56, a current ratio of 2.11 and a debt-to-equity ratio of 37.55. The company has a market cap of £2.09 billion, a PE ratio of 9.83, a price-to-earnings-growth ratio of 1.58 and a beta of 1.07. Grafton Group has a one year low of GBX 788.60 and a one year high of GBX 1,009.80.

Grafton Group declared that its Board of Directors has approved a share repurchase plan on Tuesday, June 30th that permits the company to repurchase 0 outstanding shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Grafton Group Company Profile

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands.

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