Jefferies Names Top Picks in UK Construction Sector

Jefferies named Genuit and Forterra as its top picks in the UK construction sector while trimming forecasts across the industry. The broker favours Genuit for its defensive profile and structural drivers — notably regulatory support from the Future Homes Standard and AMP8 — and says management can largely pass through cost inflation, limiting earnings downgrades. Forterra is highlighted for attractive valuation, strong cash generation and a conservative balance sheet (leverage under 1x), supporting potential excess cash returns to shareholders. Market impact: limited broad upside for the weak construction backdrop, but selective support and relative outperformance are likely for these resilient, cash-generative names, with modest implications for UK 100 sector constituents.