Analysts at brokerage firm Jefferies indicate that the positive results recently put forth by building materials manufacturer, Boral (ASX:BLD), still serve as a pivotal factor leading to the upgrades of Seven Group Holdings (ASX:SVW).

Jefferies has subsequently raised their price target on the Australian contractor by 13%, putting it at A$30.08 per share.

While SVW has posted an EBIT growth of 20% for FY23, exceeding both their own and the market’s expectations, according to Jefferies.

In addition, another brokerage firm, Morningstar, has also increased their fair value estimate on the company by 6% to A$27.50 per share.

Morningstar underscores Seven Group Holdings' (ASX:SVW) interactions with companies listed on ASX, particularly Boral (ASX:BLD), as the main propelling force behind the upgrade.

The firm further commented that the company should direct more focus towards debt reduction, even though its debts are now at ‘comfortable’ levels.

The prevalent macroeconomic setup continues to favor Seven Group Holdings, which provides a solid backing to its forecast of high single-digit EBIT growth in FY24, according to Jefferies.

As of the most recent market closure, the company’s stock has soared 28.7% this year.

Boral (ASX:BLD) is a manufacturer of building and construction materials.