RBC Capital Markets initiated coverage of Kier at ‘sector perform’ on Tuesday, saying it offers attractive exposure to structurally supported UK infrastructure investment through 2035, underpinned by an order book of around £11.6bn, sizeable framework positions and a diversified pipeline.
Kier Group
31 March 2026 10:45:20
Source: Sharecast
The bank said construction group Kier has executed strongly since FY21, improving margins, building net cash, and achieving a record order book, re-rating shares to about 10x price-to-earnings from about 4x.
"Kier is well positioned to benefit from increasing UK infrastructure investment, but consensus factors in strong growth ex HS2, requiring continued execution and supportive end-markets," it said.
RBC pointed out that contractors are valued on balance sheet strength and while Kier's position has improved, leverage remains above peers.
"Clarity of underlying growth beyond GDP+ and a plan to accelerate de-leveraging would help to further re-rate the shares," it said. The bank set a price target of 215p.
At 1045 BST, the shares were down 1.3% at 191.70p.
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