SigmaRoc has 30% upside from Nordkalk acquisition – broker


SigmaRoc (AIM:SRC) PLC has been reinstated as a buy with a target price of 125p by broker Liberum, which likes the now approved Nordkalk transaction.

Shares in the building materials supplier have doubled over the past year but Liberum sees further re-rating on the transaction, with over 30% upside to the new target price.

Nordkalk brings scale, is comparatively low risk as it diversifies the group’s geographical and end markets and its profitability has been consistent and is improving.

More than this, the strength of cash flows from Nordkalk means the group now has c.GBP78m to spend each year on acquisitions across six platforms.

Shares rose 2% to 98p.


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