General | Feb 04 2006
Traffic Technologies (TTI) specialises in traffic management, and it has been benefiting of late from an increase in Australia’s road works and infrastructure spending. It has just acquired Sunny Signs, which makes most of the road signs in WA.
Austock has responded by suggesting the acquisition will be only marginally accretive in FY06, but will lift FY07 earnings per share by 23%. The analysts have raised their target price by 12%, from $0.32 to $0.36.
Traffic Technologies paid $2.2m for Sunny Signs, and Austock notes the company has another $7m which could be used for further consolidation through “bolt-on” acquisitions. The analysts rate TTI a Buy. The stock last traded at $0.285.
