Evolution Securities downgrades the marine, oil and gas services firm from add to “reduce” with a target price of 825p after it said it was in talks with Finnish marine engineering group Wartsila over a possible takeover offer. The target price was raised to match the potential offer price, but the broker cut its recommendation as the company’s shares soared towards that price on Friday after the offer was announced.
Investec maintains its “hold” rating on the business outsourcing group but reduces its target price from 725p to 630p following a management statement from the company that took a more cautious tone than previously delivered. Although the group has won 16 new contracts worth £1.26bn in the year so far, revenue attrition on existing contracts has continued and the decline in organic revenue is expected to continue.
Brewin Dolphin rates the engineering and construction firm as a “buy” with a target price of 600p, after a fairly upbeat management statement from the company, which said it expects full-year results to be in line with expectations. The broker says that although Kentz is trading at a premium to the sector, it is being rewarded for strong execution and earnings upgrades in the past, and for having performed robustly through the downturn.