Keller Group PLC

Analysts have raised price targets for Keller Group, with RBC Capital upgrading the stock to Outperform and lifting its target to 3,100 GBp from 2,270 GBp, while Deutsche Bank increased its target to 3,150 GBp from 2,400 GBp. The revisions follow a recent trading update and stronger North American performance, with RBC also raising FY26 to FY28 adjusted EPS estimates by 5.8% to 8.6%. As a result, Simply Wall St's Fair Value for Keller Group has moved from about £30.76 to around £32.25 per share, reflecting adjustments in revenue growth, net profit margin, future P/E, and discount rate assumptions. Deutsche Bank maintained a Hold rating despite the higher target, suggesting some caution about how much upside is already priced in.

Keller Group reported record first-half 2026 results, with constant-currency revenue up 11% and underlying operating profit up 17.1%, driven by strong North American demand for data-center foundations and infrastructure projects. North America revenue rose 16.7% to £984.4 million and operating profit increased 17.7% to £93.8 million, while data centers grew to 9% of group revenue from 3% in 2025. EMEA profit rose 28% despite a 5.2% revenue decline, and APAC revenue grew 22.8% but profit was broadly flat due to pricing and weather pressures. The board declared an interim dividend of £0.287 per share, a 57% increase, and management expects to end the year with approximately £30 million of net cash while remaining confident of meeting upgraded full-year expectations.

Keller Group's fair value estimate has risen from £25.28 to £30.76 per share following higher analyst earnings expectations. RBC Capital upgraded the stock to Outperform with a £31.00 price target, raising adjusted EPS estimates for FY26 to FY28 by 8.6%, 7.2% and 5.8% respectively, citing stronger North American trading. Deutsche Bank lifted its target to £31.50 from £24.00 but maintained a Hold rating, suggesting the improved outlook is largely priced in. The revised fair value reflects an assumed long-term revenue growth rate of 4.51%, up from 2.72%, a projected net profit margin of 4.91%, up from 4.78%, and a future P/E multiple of 15.45x, up from 13.83x, with a discount rate of 9.66%, down from 9.87%.