Aug. 30 (Bloomberg) -- Hyder Consulting Plc, the U.K. company that helped engineer Dubai’s twin Emirates Towers, rose to the highest in more than five years after it won a National Grid Plc framework contract for environmental consulting services.
The shares rose 4.5 percent to 498.5 pence, the highest price since January 2008, at the close of trading in London.
Hyder won all 11 lots that it bid for and “anticipates capitalizing on a wide range of opportunities” as a result because National Grid is investing heavily in upgrading infrastructure, the London-based company said in a statement. The agreement means Hyder will provide services including environmental impact assessments and project management for National Grid as projects arise.
“To win 11 lots shows that National Grid trust them a lot and that they’ve got a wide range of skill capability, it’s a nice endorsement by the National Grid,” said Mike Allen, an analyst at Panmure Gordon U.K. Ltd. “But the financial impact is unclear because it’s a framework contract.” Allen recommends that clients buy the stock and has a price estimate of 550 pence.
Eight out of nine analysts that share their ratings with Bloomberg recommend buying the stock, while one has a hold rating.
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