Morgans initiates coverage of Maas Group Holdings with an Add rating and $3.05 target price.
The company is a leading independent Australian construction materials, equipment and services provider. It has diversified exposures across civil, infrastructure, mining and real estate end markets.
Over FY20-23, the broker forecasts an EPS compound annual growth rate (CAGR) of 22%, driven by material growth in quarry sales volumes and increased residential sales.
Additionally, the analyst expects strong activity levels in civil and infrastructure end markets.
The company provides exposure to a founder-led business benefitting from positive industry tailwinds and further upside potential from accretive M&A, in Morgans view.
Target price is $3.05.