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Company spotlight: Enterprise

FINANCE

INVESTORS still looking to add Enterprise to their portfolios will need to act fast or they will miss out.

A founder member of the Alternative Investment Market, the contractor skilfully used the junior markets to grow by acquisition before making the transfer to the main exchange earlier this year.

Despite making that move, the company does not have as big a following as some peers ? perhaps partly because the business has not grown out of a core contracting operation but an outsourcing base.

Of eight covering analysts, six are positive with the remaining pair neutral ? a statistic that tells a story.

DrKW is one of the half a dozen institutions with a 'buy' tag on Enterprise and, seeing opportunities for more growth in the future, the German investment bank is urging investors into the stock up to the 440p mark.

There is plenty of space between the current valuation and that target price and this enthusiasm is based on the impact from the number of acquisitions that Enterprise has made over the years.

Acquisitions of maintenance contractors such as CRW and JJ McGinley, the latter helping Enterprise boost its position in the cash-rich social housing sector, take the business into a riskier territory than the form of outsourcing that the firm grew up with.

Enterprise's growth in this area will suit the more nervous investor as the long-term nature of the deals, mostly partnering contracts, should reduce the likelihood of any woeful black holes appearing in the company's accounts.