Liberum upbeat on CityFibre Infrastructure following "transformational" deal

The City broker Liberum has repeated its 'buy' call and increased its share price target for CityFibre Infrastructure (LON:CFHL) following the £90mln acquisition of KCOM’s national network. Analyst Jason Holden called the deal “transformational”, pointing out that it effectively doubles CityFibre’s footprint. It is now the owner of 2,100 kilomtres of fibre in 36 towns – 21 of them entirely new markets. That equates to 24,500 public sector sites, 7,000 cell locations, 245,000 businesses and 3.5mln homes. “Against the backdrop of relatively low fibre penetration in the UK, CityFibre represents a unique play on a growth market,” said Liberum’s Holden. He shifted his valuation of the business to 138p a share from 114p. The stock is currently changing hands for 56.8p, giving a market capitalisation of £140mln.