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Highlights

  • Analysts from Panmure Liberum, Berenberg, and Investec reaffirmed BUY ratings on Keller Group.

  • Target prices imply upside between 33.55% and 45.30% from the current price of GBp 1,404.

  • Record-breaking FY2024 performance, including a 30% rise in EPS and a 87% jump in free cash flow.

Keller Group PLC (LSE:KLR), the world’s largest geotechnical specialist contractor, has received a wave of bullish sentiment from analysts following its FY2024 results. Analysts at Panmure Liberum, Berenberg, and Investec have each issued BUY recommendations on the stock.

As of the latest data, the company’s target prices range from GBp 1,875 to GBp 2,040, implying potential upside of 33.55% to 45.30% from the current trading level of GBp 1,404.

Analysts Back Performance with Confident Price Targets

  • Panmure Liberum’s Joe Brent reaffirmed a BUY rating with a price target of GBp 2,040, the most optimistic among the three, reflecting a 45.3% upside.

  • Berenberg’s Robert Chantry also reiterated a BUY recommendation, targeting GBp 1,900 – a 35.33% potential gain.

  • Investec’s Aynsley Lammin set a target of GBp 1,875, representing a 33.55% increase from the current level.

All three analysts awarded Keller Group high overall recommendation scores, aligned with the company’s operating metrics and consistent shareholder returns.

Record-Breaking FY2024 Results

Keller’s results for the year ended 31 December 2024 underscore the Group’s strategic execution and operational strength:

  • Revenue rose to £2.99 billion, a 4% increase at constant currency.

  • Underlying operating profit hit a record £212.6 million, up 22%.

  • Operating margins improved by 100 basis points to 7.1%, showcasing improved efficiency.

  • Earnings per share surged 30% to 199.9p, while statutory EPS jumped 60%.

  • Free cash flow generation soared by 87%, reaching £192.6 million.

  • The company also achieved a dramatic net debt reduction of £116.7 million, bringing leverage down to just 0.1x.

This robust financial performance contributed to a record £1.6 billion order book, affirming healthy demand and strong project visibility heading into 2025.

Shareholder Returns and Buyback Initiative

In light of its exceptional performance and positive growth trajectory, Keller's board has recommended a final dividend of 33.1p, lifting the total FY2024 dividend to 49.7p, a 10% year-on-year increase.

Furthermore, Keller unveiled plans for a multi-year share buyback programme, with an initial £25 million tranche to commence in Q1 2025.