Investing.com -- Shares of Keller Group (LON: KLR ) fell more than 3% on Thursday after Deutsche Bank downgraded the stock to “hold” from “buy,” citing signs that the investment case has largely played out for now.

The brokerage also lowered its price target to 1,660p from 1,800p. Keller’s stock closed at 1,434p on Wednesday.

In a note to clients, analyst Jonathan Coubrough pointed to a transformation in Keller’s financial performance over the past five years, driven by effective management actions and a cycle of substantial earnings upgrades. Over that period, the company’s share price has doubled since late 2023.

Coubrough highlighted that Keller delivered a 7% EBIT margin for FY24, 40% above its 10-year average, while return on capital employed reached 28%, nearly twice its historic average.

However, he flagged a decline in group profits during the second half of 2024, which fell by double digits.

Guidance for a return to the group’s usual second-half weighting this year implies a year-on-year decline in earnings for H1 2025, according to the note.

Hitting full-year consensus forecasts for 2025 would require a strong rebound in the second half.