On Tuesday, BMO Capital Markets maintained a positive stance on Bird Construction Inc. (BDT:CN) (OTC: BIRDF), reiterating an Outperform rating while raising the price target to Cdn$29.00 from the previous Cdn$25.00. This adjustment follows Bird Construction's announcement of its acquisition of Jacobs Bros, a British Columbia-based firm specializing in civil infrastructure and specialized projects.
The acquisition is set to enhance Bird Construction's portfolio towards more infrastructure-focused end markets and is anticipated to provide additional opportunities for cross-selling, as the two companies have already collaborated on several projects. The transaction is expected to be finalized in early Q3 of 2024.
BMO Capital's revised price target of Cdn$29.00 reflects approximately 6.3 times the company's projected 2025 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA). This valuation indicates a confident outlook on the company's financial performance following the acquisition.
Bird Construction's strategic move to acquire Jacobs Bros is seen as a significant step to diversify its operations and enhance its market position in the infrastructure sector. The financial markets will be watching closely as the company moves toward closing the deal and integrating the new acquisition into its business model.
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