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Polypipe investor interest 'to remain elevated' - Deutsche Bank
Deutsche Bank reiterated its 'buy' rating on plumbing and drainage systems manufacturer Polypipe on Wednesday, saying the firm looked set to extend its track record of reliable delivery.
Deutsche analyst Priyal Mulji noted that Polypipe's 2017 results, delivered the day before, "continued its record of delivering robust and reliable updates", and with key metrics marginally ahead of expectations, management appeared to be comfortable with the current consensus.
The analyst pointed out that Polypipe seemingly expects limited changes to its forecasts, with the tone of its most recent outlook being confident despite continued uncertainty in its commercial and infrastructure units, given that losses there were due to be offset by a robust performance from its residential new-build wing.
"We see scope for investor interest to remain elevated in the run-up to this, and the event should also serve as a useful reminder of the quality and sustainability of Polypipe's growth potential," Mulji wrote.
"Trading in the mid-range of peers at c.14x 2018E P/E, we continue to see value given the more structural nature of Polypipe's key growth drivers," the analyst concluded.