Noble Securities: Budimex should reduce target price to PLN 552
19:08
Analysts from Noble Securities initiated coverage of Budimex with a "reduce" recommendation, setting a 9-month target price at PLN 552, below the current price of PLN 587. Despite recognizing Budimex as a well-managed company with strong financials and consistent dividend payouts, the analysts anticipate challenges ahead. They expect Budimex to face decreasing profit margins from mid-2025 due to rising costs in materials and subcontracting across the construction industry, particularly impacting 2026 and early 2027.
While Budimex's cash position is strong, they do not foresee significant improvement due to increased working capital needs, leading them to conclude that the stock remains slightly overvalued.
