Mears Group Plc: Cash machine

研报英文原文证据摘录

Mears Group Plc: Cash machine

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Mears Group Plc 15 May 2026

Company Update

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 13 May 2026 (GBP) 403.00

MERG.L MER LN LSE MERG

Price Target (GBP) 520.00

Business Services

417.50 -

52-week range (GBP)

311.50

Cash machine

Valuation & Risks

David Brockton

Strong momentum in a structurally growing Maintenance market Research Analyst

We believe Mears’ cash generation prospects are overlooked by the market. Its +44-20-754-11721

social housing Maintenance activities are backed by structural growth drivers and

James Beard

ring-fenced budgets, and the group is also in a sweet spot for growth, reflecting Research Analyst

recent strong contract retention, major new wins, and a highly favourable +44-20-754-56765

regulatory environment. We increasingly see upside potential to our divisional

Steve Woolf

forecasts that are prudently struck at the low-end of guidance for 5-9% annual

Research Analyst

revenue growth.

+44-20-754-54604

Bharat Rajesh, CFA

Growing Central Government capability

Research Associate

While normalising Management activities offset headline group profits growth, we

think the market undervalues the financial returns and strategic merits of this offer.

The business has established a track record of delivery for Central Government as Price/price relative

a housing specialist, managing a diverse portfolio of housing across a range of

publicly funded sectors. The business is also well placed to win more work as it

comes to market, with over £150m of annual incremental revenue opportunity

currently being tracked (>16% of group). 300

2024 2025 2026

Predictable revenues, low re-bid risk and upside from wins and expansions