Background of the Target Price Adjustment
Montega has increased the target price for PORR from originally 30 EUR to 36 EUR, attributed to the company’s strong performance in the first quarter of 2025. PORR’s order backlog rose to a new record of 8.8 billion EUR as of March 31, marking an increase of 4.4% compared to the previous year. This development is driven by a strong order intake, which has increased by 17.4% year-on-year.
Drivers of the Positive Development
A significant driver of this positive development is the DE segment, which increased by 81.1% compared to the previous year, achieving an order intake of 233 million EUR. New medium-sized residential construction projects in cities such as Osnabrück, Duisburg, Leipzig, and Münster have significantly contributed to this success.
Importance for Private Investors
This development is significant for private investors as it indicates potential for value appreciation of PORR shares. The positive outlook for the construction sector, which has transitioned from a problem child to a potential supercycle, supports this forecast. Montega values the stock with an EV/EBIT of 7.0 for 2025 as moderate and maintains a buy recommendation.
Summary
Overall, Montega’s target price increase shows that PORR is on a solid growth path and offers potential for further value appreciation. This development could encourage private investors to take a closer look at the stock, as it suggests a positive future for the company.