Ibstock's (IBST) "Buy" Rating Reaffirmed at Peel Hunt

Key Points

• Peel Hunt reaffirmed its “Buy” rating on Ibstock and set a GBX 125 price target, implying 33.9% upside from the previous close.
• Analyst sentiment remains broadly positive, with three Buy ratings and two Holds, producing a “Moderate Buy” consensus and average target price of GBX 122.40.
• Ibstock shares fell to GBX 93.35 amid weak housing-construction demand, while recent results showed a 15% revenue decline, a £27 million loss, a reduced dividend and a cautious profit outlook.

Ibstock (LON:IBST - Get Free Report)'s stock had its "buy" rating reissued by stock analysts at Peel Hunt in a report released on Wednesday,Digital Look reports. They currently have a GBX 125 price target on the stock. Peel Hunt's price target points to a potential upside of 33.90% from the company's previous close.

IBST has been the topic of a number of other research reports. Royal Bank Of Canada lowered their price target on Ibstock from GBX 160 to GBX 130 and set an "outperform" rating on the stock in a report on Thursday, July 30th. Berenberg Bank decreased their price objective on Ibstock from GBX 135 to GBX 120 and set a "hold" rating for the company in a research report on Friday, May 22nd. Finally, Jefferies Financial Group decreased their price objective on Ibstock from GBX 133 to GBX 127 and set a "buy" rating for the company in a research report on Monday, April 20th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of GBX 122.40.

Ibstock Stock Performance

LON IBST traded down GBX 4.45 during trading on Wednesday, reaching GBX 93.35. The company's stock had a trading volume of 4,156,197 shares, compared to its average volume of 5,235,819. The business's fifty day moving average price is GBX 94.67 and its 200-day moving average price is GBX 107.28. Ibstock has a twelve month low of GBX 87.65 and a twelve month high of GBX 159.80. The company has a debt-to-equity ratio of 44.59, a quick ratio of 1.19 and a current ratio of 1.33. The firm has a market cap of £368.75 million, a price-to-earnings ratio of 116.69, a P/E/G ratio of 0.47 and a beta of 0.86.

Trending Headlines about Ibstock

Here are the key news stories impacting Ibstock this week:

• Negative Sentiment: First-half revenue fell 15% and Ibstock reported a £27 million loss, as subdued housing construction reduced demand for bricks and other building products. Ibstock falls into red and sees revenue drop 15% in half-years Ibstock makes £27m loss as brick demand dives
• Negative Sentiment: The housing-market slowdown significantly weakened operating performance, with coverage describing a plunge in revenue and profit and a deterioration in construction-market conditions. Ibstock Reports Lower First-Half Revenue as Housing Market Weakness Weighs on Results Ibstock’s revenues and profits plunge
• Negative Sentiment: Ibstock has reduced its dividend, making the results less attractive to income-focused investors and signalling management’s caution about near-term cash generation. Ibstock reports £27m loss and slashes dividend as UK housebuilding slump deepens
• Negative Sentiment: The company issued a cautious outlook and warned that full-year profit would be affected if weak construction demand persists. This raises the risk of further earnings downgrades. Ibstock gives cautious outlook amid subdued construction market UK's Ibstock warns on full-year profit as construction market stays weak

About Ibstock

Ibstock plc manufactures and sells clay and concrete building products and solutions to customers in the residential construction sector in the United Kingdom. The company offers bricks and masonry, which includes facing and engineering bricks, brick slips, special shaped bricks, walling stone, architectural masonry, prefabricated components, eco-habitats, and padstones and lintels, as well as façade systems; roofing products comprising roof tiles and accessories, and chimneys; and flooring and lintels, such as beam and block flooring, insulated flooring, hollowcore, and screed rails.

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