MICHELMERSH BRICK HOLDINGS, BUILDING BRITAIN ONE BRICK AT A TIME

Ticker: MBH

Price change since beginning of 2024: +6.20%

12- Month price change: +10.80%

INTRODUCTION

Michelmersh Brick Holdings (MBH) is a three-division business that completely integrates the manufacturing and selling of clay bricks and pavers. The company was established in 1997 and produced over 120 million bricks per year. The company is well invested, with the business focusing on sustainable, long term and environmentally friendly production of brick. The company also has a landfill division, in which it strives to develop sustainable landfill processes and operations. The company is widely recognized as one of Britian’s critical suppliers of brick, earnings the nickname of “Britain’s Brick Specialist”. The company experienced a sharp decline, finding a local bottom in November 2023, trading at 78.5 GBX. Since then, the company has recovered 36%.

MICHELMERSH CAPITALIZES ON THE APPETITE FOR BUILDING

The recent political scene in the United Kingdom has seen its fair share of turbulence. However, one thing that has remained stable is the appetite of both major political parties for building more homes. According to the most recent reports, the conservative party in the UK has promised to build some 300,000 new homes per year, with the Labour party making the same pledge. Therefore, whichever party comes out on top, business for Michelmersh Brick Holdings (MBH) looks like it will remain robust. Not only is the company’s business outlook robust, but it is a company that ranks in the top 30% of Materials companies, a testament to the success of its business model and market placement.

ONE OF EUROPE’S OLDEST PRIVATE BANKS ISSUES A BUY RATING

One of Europe’s oldest private banks, Berenberg, recently reiterated its buy rating of Michelmersh Brick Holding (MBH), setting a price target of 170 GBX, suggesting a potential upside of 66% from current price levels. The optimism could stem from the fact that the company is expected to deliver in the context of financial performance. Despite the turbulence during the pandemic, the recovery post pandemic seems to have gained strong momentum, and the improvement in overall price action could reflect that.

HOW IT ALL STACKS UP FOR MICHELMERSH BRICK HOLDINGS PLC

The underlying improvements in Michelmersh’s Brick Holding (MBH) financial performance come from their robust business outlook. With the political class in Britain determined to build more homes, this provides the company with a healthy pipeline of potential business looking ahead. Furthermore, this potential has been verified by the improving price target adjustments set by banks that cover the stock, which of course includes Berenberg Bank. Therefore, this could be a viable micro strategy stock.