Balfour Beatty plc (LSE:BBY) is set to provide an “enhanced opportunity” to investors, according to Jefferies analysts, who provided five reasons to buy shares in the infrastructure group.
They cite Balfour’s UK order book as being “robust and low risk,” being mainly made up of public and regulated contracts, including the Power project pipeline which Jefferies views as its main growth opportunity.
Balfour’s 2015 management reshuffle has also begun to pay off, according to the analysts, with new CEO Leo Quinn’s “build to last” strategy delivering steady operational improvement since.
With energy transition gathering pace in the UK, the analysts outline how Balfour is set to gain from projects such as Hinkley Point, Sizewell C and offshore wind, providing opportunities for growth outside of its core business.
Jefferies also highlighted strong US demand and its ongoing buybacks as strong reasons for Balfour’s future success.
Balfour is up 0.4% to 298p.