UPDATE 2-ADF Group gets C$77 mln contract; shares rise
* Gets contract in N. America public infrastructure sector
* New contract to create about 50 jobs at Terrebonne plant
* Contract to extend over 20 months, delivery in fall
* Shares up 7 percent
July 13 (Reuters) - Maker of steel superstructures for building constructors ADF Group Inc (DRX.TO) said it received a contract worth C$77 million ($66.2 million) in North America's public infrastructure sector, sending its stock up as much as 14 percent.
"This contract significantly de-risks the ADF story" analyst Yuri Lynk wrote in a note to clients, while upgrading the stock to "buy" from "sell."
Quebec-based ADF said the contract will create about 50 additional jobs at its Terrebonne, Quebec plant.
The contract will extend over a 20-month period, with delivery to start in the fall of this year, and includes the design and engineering of connections, supply of steel, and fabrication of oversized steel components.
Lynk said while non-residential construction spending is likely to remain challenged, the strength of ADF's niche markets "continues to surprise."
The analyst raised his price target on the stock to C$3.25 from C$1.60.
Shares of the company rose to a high of C$2.55, before paring some gains to trade up 15 Canadian cents at C$2.38 in afternoon trade on the Toronto Stock Exchange.
($1=1.163 Canadian dollar) (Reporting by Isheeta Sanghi in Bangalore; Editing by Anil D'Silva) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))
