SIG downgraded by Canaccord

Equity research analysts at Canaccord Genuity have downgraded their investment rating on SIG (LON:SHI) to ‘hold’ from ‘buy’ following the building materials group’s latest trading update and stating that, while there is value potential, there is also a distinct lack of visibility.

The broker added: “We suspect that a new management team will have a close look at structural issues within the business as well as focusing on accelerating the delivery of some of the current plans.

“Until there is more visibility on both trading and the plans of a new management team, we find it difficult to see a compelling investment case, other than acknowledging the potential to extract better growth and returns.”

Canaccord has lowered its price target to 99 pence a share from 130 pence.

Meanwhile, Deutsche Bank and Numis maintained respective ‘hold’ recommendations.

Cutting its target to 100 pence (from 116 pence), Deutsche said: “Despite trading at a discount to peers, we see limited value given SIG’s higher risk profile (strategy implementation, management changes).”

At 2:23pm: (LON:SHI) SIG PLC share price was -0.05p at 90.45p

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