Galliford Try’s acquisition of nmcn’s water businesses (out of administration) for £1m is consistent with the recently articulated sustainable growth strategy, said Peel Hunt.
The broker has raised its June 2022E profits estimate to £18mln from £17.5mln to reflect the purchase with a first full year bumping up the 2023 numbers to £21mln from £19.7mln or 7% accretion.
There is potential for more outperformance given the new growth opportunities arising from Galliford’s strong sector record, the complementary client portfolio and synergistic activity profiles.
Buy with a 230p target price said the broker.