Construction contractors: Market ripe for recovery - Berenberg
14/11/2019 09:15
** According to Berenberg, the dredging sector is "exposed
to a number of long-term drivers", such as the creation of ports
and offshore energy developments
** Says that the market has returned to growth with offshore
capital expenditure expected to grow 7% per year in the
following years
** The broker starts Dutch marine engineer Boskalis
BOSN.AS with a "buy" rating, saying that the anticipated
recovery in both dredging and oil and gas markets should trigger
a change of the company's earnings as well as its share price
** Also sees "solid growth ahead" for the company because of
Boskalis' current record backlog with an all-time high both in
absolute terms and in relation to previous year’s sales
** Berenberg initiates Belgium-based construction company
CFE CFEB.BR at "hold" saying that "market expectations are
currently too high"
** Adds that the continuous focus on cost reduction on wind
energy might lead to an intensifying pricing pressure for the
company
(antonis.pothitos@thomsonreuters.com)