Update shared on22 Aug 2025
Fair value Increased 16%The consensus analyst price target for Costain Group has increased to £1.82, primarily reflecting an improved revenue growth outlook, with growth forecasts rising from 4.0% to 8.1% per annum.
What's in the News
- Deutsche Bank raised its price target for Costain Group to 150 GBp from 115 GBp while maintaining a Hold rating. (Periodical)
- Costain Group declared an interim dividend of 1.0 pence per share for the six months ended 30 June 2025, a significant increase from the previous interim dividend of 0.4 pence; payment set for 17 October 2025 with a scrip alternative available. (Key Developments)
- Costain executed share buybacks in two tranches during 2025: 9,718,950 shares (3.56%) for £10 million under the August 2024 mandate, and 6,395,100 shares (2.38%) for £10 million under the June 2025 mandate, as part of a capital return and EPS-enhancing program. (Key Developments)
- Costain was engaged by EnergyPathways for a strategic assessment of site options for the large-scale MESH decarbonisation and energy storage project, leveraging Costain's infrastructure and energy transition expertise. (Key Developments)
- The company, through the SPA, was selected by Anglian Water to deliver 260km of major strategic pipeline in the East of England over five years, extending an existing contract and building on its water resilience credentials. (Key Developments)
Valuation Changes
Summary of Valuation Changes for Costain Group
- The Consensus Analyst Price Target has significantly risen from £1.58 to £1.82.
- The Consensus Revenue Growth forecasts for Costain Group has significantly risen from 4.0% per annum to 8.1% per annum.
- The Future P/E for Costain Group has risen from 11.43x to 12.15x.
Disclaimer
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