Engineering and construction group Renew Holdings' (LON:RNWH) sale of land, announced today, moves it to a net cash position, says broker Numis, which lifted its target price on the stock.
The move means the broker no longer expects a net finance charge in 2014 and raises its pre-tax profit estimate for that year for the firm to £134mln from £12.6mln.
"Renew has announced the sale of surplus land in the UK for £11m cash," said the broker.
"Coming so soon after the acquisition of Lewis Civil Engineering, this clearly puts the group in a strong position to continue to self-fund acquisitive potential alongside its attractive organic growth profile, and we raise our target price to 148p/share to take account of this and retain a positive recommendation," said analyst Howard Seymour.
The broker previously had a target price of 130p on the stock. It rates it a 'buy' from 'add' previously.
Renew shares are up 8.82% today, at 129.50p.