Hyder Consulting Surges on National Grid Contract: London Mover
Hyder Consulting Plc (HYC), the U.K. company that helped engineer Dubai’s twin Emirates Towers, rose to the highest in almost six years after it won a National Grid Plc (NG/) framework contract for environmental consulting services.
The shares rose as much as 9 percent, and were trading up 6.9 percent at 510 pence at 10:08 a.m. in London, the highest price since November 2007. Trading volume was about a third of the three-month daily average.
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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