Q: What is your opinion of Bird Construction? Do you think it is a good time to start a position, with 3-5 yr time frame? Or, is there another commercial/industrial construction company you prefer?
5i Research Answer:
BDT is up 33% this year, and hitting new highs, yet remains cheap at 9X earnings. The balance sheet is fine, and good growth is expected over the next two years. Its backlog is building with new recent contracts, and the 2Q results were nicely ahead of estimates (EPS 30% better). It has received recent broker upgrades. There is size and economic risk here but it looks pretty good to us for the small cap sector. WSP would remain our choice for a large cap.