Bird Construction (TSX:BDT) Acquires Fraser River Pile & Dredge For A$82 Million

Bird Construction (TSX:BDT) recently announced the acquisition of Fraser River Pile & Dredge for $82 million, likely providing momentum to its shares, which gained 12% over the past week. This upward movement was further supported by the company's consistent monthly dividend payout of CAD 0.07 per share, reinforcing investor confidence. The market's positive reception to declining wholesale inflation and record highs in key indices such as the S&P 500 and Nasdaq likely supported this gain. The combination of these corporate and market factors likely contributed to the robust performance of Bird Construction’s stock during this period.

You should learn about the 1 risk we've spotted with Bird Construction.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

The recent acquisition of Fraser River Pile & Dredge by Bird Construction could significantly impact the company’s long-term growth potential. With an increased focus on infrastructure and green building projects, the acquisition supports Bird's narrative of revenue expansion and margin improvements. This aligns well with the record infrastructure backlog and the strategic growth in specialized projects, potentially enhancing the forecasted revenue and earnings.

Over the past five years, Bird Construction's total shareholder return, including dividends, reached a substantial 371.31%, outperforming many during this period. However, it underperformed the broader Canadian Market and the Canadian Construction industry over the past year with returns of 23% and 37%, respectively. This discrepancy highlights the challenges and shifts the company has faced recently but underscores its resilience and solid long-term value generation for shareholders.

The momentum from recent news and long-term factors could influence revenue and earnings forecasts positively. Analysts anticipate a positive trajectory with a revenue growth forecast of 11.3% annually, signaling confidence in Bird's potential following the acquisition. With the current share price at CA$25.85, the upside potential to the analyst price target of CA$33.56 suggests a possible rise of around 29.8%, indicating that the market may gradually adjust to reflect the fair value projected by consensus analyst targets. Investors might view this as a compelling proposition, given the company's robust acquisition strategy and growth prospects.

Gain insights into Bird Construction's historical outcomes by reviewing our past performance report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com