Market's view on Kier
Published on April 2024
- Stock watchers are discussing the purchasing strategy of buying on dips in RSI and adding shares around the 50 DMA level, with expectations of reaching £1.47 based on recent highs.
- Positive movements are noted in the share price, with a forecast of 150p in the next three months and a potential £2 by year-end due to sector focus and strong company positioning within the FTSE250. Upcoming final dividend announcements and the strength of the cash position post-year-end are anticipated to attract investors for a £2 share target.
- There’s a mention of another significant framework won by Kier, which highlights its involvement in a £1.6bn decarbonisation framework, excluding the healthcare sector.
- Kier has secured a renewal project for Bromsgrove town centre, which includes developing a 50,000 sq ft commercial and cultural hub.
- Discussions include the potential macroeconomic impact of a £15bn to £18bn hit on bondholders from another sector, suggesting caution in the market.
- Stock watchers are optimistic due to recent framework wins and contracts, including a £225m highways maintenance contract with Somerset Council and a strategic win in the Network Rail’s North West & Central Region CP7 Framework.
- Kier’s involvement in the development of a fleet of mini-nuclear reactors through a partnership with X-energy and Cavendish Nuclear is seen as a significant opportunity.
- There’s a discussion on the financial stability of utilities, specifically referencing Thames Water’s ability to operate independently despite its parent company’s debt default, highlighting the resilience of essential services.