Ibstock PLC (LON:IBST) has been downgraded to ‘hold’ from ‘buy’ by analysts at Deutsche Bank, who also decided to cut their forecasts following a trading update from the brick and concrete maker last week.
In a note on Monday, the bank also lowered its target price for the FTSE 250 firm to 168p from 183p alongside a lowering of their pre-tax profit forecasts for both 2020 and 2021.
READ: Ibstock sees demand recover in third quarter amid improved housebuilding activity
Analysts added that while they did not think the shares were expensive, they believed they were “up with events”.
Deutsche’s assessment came after Ibstock reported a “continuing recovery” in demand for the quarter ended September 30, highlighting activity in both its repair, maintenance and improvement (RMI) and merchant markets amid an uptick in housebuilding.
However, the company’s chief executive Joe Hudson also cautioned of “significant uncertainty in the period ahead” despite trading being ahead of the company’s base case for the full year.
Ibstock shares were down 7% at 149.4p in mid-morning trading.