Market's view on Renew Holdings
Published on April 2024
- Stock watchers observe that falling interest rates should boost stocks like Costain.
- RNWH (Renew Holdings) appears to be performing strongly, with significant involvement in Network Rail’s CP7 five-year plan, which has a budget of £44 billion, and in Thames Water’s investment and maintenance projects.
- J. Browne has been awarded trunk mains renewal works by Thames Water.
- QTS Group has secured a position in Network Rail’s nearly £2bn capital works delivery frameworks for CP7 in the North West and Central region.
- AmcoGiffen was noted for becoming a go-to company for Network Rail, securing multiple lots in a £2 billion framework which includes a variety of project sizes and types.
- Network Rail has announced a £2.8 billion expenditure plan to protect railways from climate change and extreme weather, which is beneficial for RNWH due to their expertise in related areas.
- Renew Holdings received positive commentary from Peel Hunt, highlighting strong performance, attractive growth, and strong free cash generation, with a ‘buy’ recommendation and a target price of 950p.
- Richard Beddard rated RNWH as good value in his Decision Engine portfolio analysis.
- There are expectations of strong trading updates from RNWH, reflecting robust demand and excellent visibility due to long-term framework contracts and substantial order books.
- Analysts have noted RNWH’s consistent performance, often meeting or exceeding expectations since 2006, and highlighted its strong financial position which supports strategic acquisitions.