The increase of the price target for PORR AG by Montega to 36 Euros is a significant signal for investors in the German-speaking area and reflects the current assessment of analysts regarding the company’s development.
Background and Occasion
Montega raised the price target for PORR after the release of the Q1/2025 quarterly numbers from 30 to 36 Euros. The recommendation remains “Buy,” with the new price target covering a twelve-month outlook. The occasion is primarily the strong order intake in the first quarter, which reached a new high despite selective project acquisition. The order backlog stands at approximately 8.8 billion Euros, providing a solid basis for future revenues.
Analysis of Q1 Figures
The period result was slightly below the previous year’s figure at 0.7 million Euros (1 million Euros), but this is not perceived as a weakness. Instead, the growth in new orders was particularly convincing: Order intake increased by 17.4% year-on-year to 1.539 million Euros. Notably, the Germany segment saw an increase of over 81% to 233 million Euros — driven by medium-sized residential construction projects in cities such as Osnabrück, Duisburg, Leipzig, and Münster, along with the largest single order in the first quarter.
Valuation and Outlook
Montega still views the valuation of the stock as moderate: The EV/EBIT ratio is projected to be around seven for the year 2025—a value that remains attractive given the positive industry environment. Analysts say the sentiment in the construction sector has shifted from a troubled child to a potential supercycle. The forecast for the entire year remains unchanged positively.
Thus, the increase in the price target underscores PORR’s very good prospects and could spark additional interest from both institutional and private investors—especially against the backdrop of a stable order backlog and positive market developments in the construction industry.
Importance for Investors
- Attractive Valuation: The moderate EV/EBIT ratio signals further upside potential.
- Strong Order Intake: High demand for construction services secures future revenues.
- Positive Industry Development: The sentiment in the construction sector has improved significantly.
- Recommendation “Buy”: Montega confirms its buy recommendation with an increased price target.
These factors make PORR particularly interesting for investors in the German-speaking area who are looking for solid values with growth potential.