Maas Group shares soar on triple acquisition, equity raising
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The news: Maas Group shares surged as it emerged from a trading halt on the ASX, after the construction materials and equipment services company announced a triple acquisition and a $138 million capital raising on Thursday.
The numbers: Maas shares were up 7.7% to $4.96 by 1:15pm AEDT, having climbed more than 25% since January.
Wilsons Advisory kept its 'overweight' rating and upgraded its target price from $5.66 to $6.01.
The context: Wilsons Advisory analysts described the acquisitions as a "positive move", and said the growth drivers and upside in return on capital are "significant".
They noted that the acquisitions are consistent with the group's existing growth strategy, with the new assets adding capability in adjacent geographic regions and offering significant long-term growth potential.
What they said: "We see potential for significant earnings upside in the acquired businesses over the medium-to-long term," the analysts said.
"This is driven by volume growth (including internalising volumes for the downstream concrete business in Melbourne), lowering cost of production across the quarry assets, and fleet utilisation synergies across the transport and logistics operations."
The source: Wilsons Advisory research
