In a report released today, David Farrell from Jefferies maintained a Buy rating on Hill & Smith Holdings (HILS – Research Report), with a price target of p2,540.00.
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David Farrell has given his Buy rating due to a combination of factors that showcase the promising outlook for Hill & Smith Holdings. One of the primary reasons includes the optimistic growth projections in key sectors such as infrastructure and construction, particularly in the aftermath of recent US elections. These sectors are poised for significant expansion, driving increased demand for the company’s composite materials, which are increasingly being used as alternatives to traditional materials like steel and wood.
Furthermore, the composite materials market is buoyed by structural advantages such as light weighting, corrosion resistance, and enhanced durability, which contribute to a lower total cost of ownership. For instance, utility poles made from these composites offer a significantly extended lifespan compared to traditional wooden poles. The industry is expected to grow from a market size of $58.9 billion in 2023 to $78 billion by 2030, indicating a solid underlying growth rate. This growth, coupled with the minimal tariff risks from domestic supply chains, provides a robust foundation for Hill & Smith Holdings’ potential future success.