Shares of Ibstock plc (LON: IBST) today fell 8% after analysts at Deutsche Bank downgraded the firm’s rating to ‘hold’ from ‘buy’ and cut its price target to 168p from 183p saying that the company’s share price was now in-line with current events.
The analysts also lowered the company’s profit targets for both 2020 and 2021.
Ibstock which manufactures clay bricks and concrete products with operations in the UK and US has seen its share price fall significantly in the past week after releasing a trading update for the three months ended September 30.
Ibstock noted an improvement in demand during the quarter with revenues being 88% of those recorded in Q3 2019 and volumes recovering to 90% of those recorded last year. However, the company’s shares fell after revealing that it expects its EBITDA for the 2020 fiscal year to be £50m as compared to the £122 million recorded in 2019.
Joe Hudson, Ibstock plc’s CEO, said: “We are encouraged by the continued recovery in demand seen in the third quarter in both our Clay and Concretebusinesses, although we remain mindful that there is significant uncertainty in the period ahead.
“We remain confident in the recovery of our markets over time and that the actions we have taken in the business leave us both with the necessary flexibility to meet current challenges and an organisation well-positioned to take full advantage of future opportunities.”
Ibstock share price
Ibstock shares today fell 10.2% to trade at 144p having dropped from Friday’s closing price of 160.5p.