Analyst Views: What did you make of Balfour Beatty’s update and CEO resignation?
STEPHEN RAWLINSON | WHITMAN HOWARD
The construction markets are improving across the world, especially in the UK?and the US, but Balfour Beatty is getting worse. I think it will take a further 12 to 18 months to improve the business and things may get worse along the way. I think the company could be a takeover target now.
JOE BRENT | LIBERUM
I think the share price reaction is fair given the reduction in earnings, but I take some reassurance from [the fact that] the £30m construction hit only related to six per cent of group sales; engineering services are in the late part of the cycle… and management is thinking boldly about portfolio changes.
HOWARD SEYMOUR | NUMIS
UK construction has once again disappointed and will remain an issue until management can demonstrate that numbers have bottomed. The proposed sale of Parsons Brinckerhoff and the departure of the chief come as additional shocks and raise questions about strategic direction going forward.