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magazineBig upgrades for Morgan Sindall on bullish trading update
Morgan Sindall (MGNS) £22.80
Gain to date: 19.6%
Original entry point: Buy at £19.06, 15 April 2021
Recently added Great Idea Morgan Sindall (MGNS) is off to a flier as a trading update on 22 April saw the construction and regeneration specialist guide for full year performance ‘significantly ahead’ of expectations.
According to the update which covered the first three months of 2021, the company said all divisions made ‘positive operational and strategic progress’ in their markets and momentum across the group has continued to increase.
Based upon this situation and current forecasts to the year end, Morgan Sindall said the average daily net cash for the full year is now expected to be in excess of £180 million, also ‘significantly ahead’ of previous guidance.
We felt the company’s robust financial position would leave it well placed to benefit from reopening and this already appears to be the case.
Reassuringly, chief executive John Morgan tells Shares there will be no change to the company’s successful strategy of focusing on organic growth and maintaining a strong balance sheet.
Numis responded to the trading update by raising its pre-tax profit forecast for 2021 by 17%.
SHARES SAYS: Keep buying the shares.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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