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Highlights

  • Berenberg and Panmure Liberum assign BUY ratings, with target prices suggesting up to 16.4% upside.

  • Positive trading momentum across Fit Out and Construction divisions fuels significant profit upgrades.

  • Order book surges 28% to a record £11.4 billion, driven by partnerships and project pipeline.

Morgan Sindall Group plc (LSE:MGNS), a leading UK-based construction and regeneration group, has attracted bullish analyst sentiment after issuing an upbeat trading update that flagged significant full-year profit expectations. Reflecting confidence in the group’s performance trajectory, Berenberg and Panmure Liberum have both assigned BUY ratings.

Berenberg Sets Bullish 5,000p Price Target

Berenberg analyst Robert Chantry has reiterated a 2-BUY rating with a price target of GBp 5,000, implying an impressive 16.41% upside from the current market price of GBp 4,295. Chantry’s optimism stems from Morgan Sindall’s stellar momentum in its Fit Out division.

“Continued margin expansion and a well-diversified business model give Morgan Sindall resilience in a dynamic market environment,” noted Chantry, adding that the company’s £492 million net cash position and a high-quality order book bolster investor confidence.

Panmure Liberum Confirms BUY with 4,680p Target

Joining Berenberg in its optimistic outlook is Panmure Liberum, which issued a BUY rating with a target price of GBp 4,680, reflecting a potential upside of nearly 9%. Analyst Joe Brent pointed to robust performance across Partnerships, Fit Out, and Construction Services, which are all either exceeding or tracking well against expectations.

Panmure’s recommendation comes after Morgan Sindall revealed that profits for the current financial year are expected to be significantly ahead of prior forecasts.

Q1 Update Lifts FY25 Outlook

Morgan Sindall’s latest trading update provides a clear justification for these bullish ratings. The group highlighted that its Fit Out business, which began 2025 on positive footing, has continued to outperform, delivering greater visibility and higher profit expectations. Meanwhile, the Construction division’s operating margin is expected to land in the middle of its 3.0%–3.5% target range, with revenue growth also exceeding earlier projections.

With all other divisions performing in line with expectations, the Group’s profit before tax (PBT) is now projected to significantly exceed prior guidance, setting the stage for H1 result due on 29 July 2025.

Record Order Book and Financial Strength Support Growth

In FY2024, Morgan Sindall delivered encouraging results with revenue rising 10% to £4.5 billion and adjusted PBT up 19% to £172.5 million. A 15% dividend hike and a 28% surge in the secured order book to £11.4 billion underscore the company’s balanced growth.

Notably, the Mixed Use Partnerships business grew 62% year-over-year to £6.3 billion, while Fit Out also expanded significantly, up 31% to £1.4 billion.

Long-Term Growth Outlook Remains Bright

With a current BUY recommendation average of 1.83 and analysts forecasting continued margin gains, significant cash generation, and strategic project wins.