North American spending on utility upgrades, water systems, and underground infrastructure has been strong, which has helped boost BDGIs fundamentals. It has seen strong earnings momentum amid better operating leverage and this has helped to fuel margin expansion for the company. It trades at a 21.5X forward earnings mutliple, forward sales and earnings growth estimates are trending higher, and growth rates are strong. We feel that its rise in share price has been backed by fundamentals, and we feel that if spending on infrastructure continues at a similar rate, that this move is well-supported by fundamentals and real growth prospects. We would be comfortable with a position here, while acknowledging it could consolidate as some investors look to lock in profits.
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