LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove upgraded Genuit - formerly Polypipe - on Wednesday, to 'overweight' from 'neutral' and lifted the price target to 490p from 450p as it rolled forward its valuation to December 2026 from June 2026.
The bank said that in its initiation in October 2024, while it was positive on the mid-term outlook at Genuit, it thought the relative re-rating in the shares had gone too far, especially given JPM's more cautious view on the pace of a recovery in end markets.

Since then, the shares have de-rated around 20% relative to JPM's coverage and now trade at close to their widest discount in a decade to other residential-exposed names in the bank's coverage.

"With forecasts and end markets having stabilised, and some green shoots appearing, particularly in new build resi, we now see risk/ reward as more favourable; and in the mid-term, see more than 30% earnings upside to our forecasts (pre any M&A)," JPM said.

Genuit is a manufacturer of plastic piping systems for use in the residential, commercial, civils and infrastructure sectors.

At 0920 BST, the shares were up 6.6% at 403.50p.

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