Berenberg lowers target price on Michelmersh Brick

(Sharecast News) - Analysts at Berenberg lowered their target price on Michelmersh Brick Holdings from 150p to 120p on Wednesday, but noted the firm has been succesful in maintaining market share amid "customer uncertainty". Michelmersh released its FY25 results on 24 March, reporting underlying earnings that were broadly in line with Berenberg's forecasts and revealed that it had maintained its UK market share during the year amid gradually rising volumes, customer uncertainty and "a highly competitive" pricing environment, as industry production increased.

However, the German bank also noted that market conditions in Belgium had "remained challenging".

Although Berenberg expects the group to see EBITDA increase further in FY26, it also said was "cognisant of ongoing headwinds" relating to pricing pressure and customer uncertainty.

"We expect that the challenges that the group faced in FY25 will continue into FY26, given the ongoing uncertainty regarding momentum in the UK construction industry and the Belgian brick market. The conflict in Iran has further affected consumer confidence, extending this period of uncertainty, in our view, although we note that the group has already secured 75% of its energy requirements for FY26, limiting its exposure to energy price volatility," said Berenberg.

"As such, we have lowered our EBITDA forecasts for 2026-28 by 3-5%. We have also lowered our price target from 150p to 120p, but maintain our 'buy' rating."

Reporting by Iain Gilbert at Sharecast.com