According to a regulatory statement, (86,9 PLN, -0,11%) has signed a contract for the construction of a stretch of Sucharskiego road in Gdansk. The deal has a total net value of PLN 137.2m. The construction work must be completed within 18 months.
Our view:
We are positive about signing this latest contract in the road construction segment, although the news was first released during last Wednesday’s session and we expect a neutral impact on Budimex’s stock price today. Moreover, the Polish Press Agency announced in mid-May that the company had placed the lowest bid for the contract, while price was defined as the key requirement of the tender. As a result, the signing of the deal is unlikely to surprise the market. Our forecasts already include the value of this latest contract.