Citi has reaffirmed its ‘buy’ rating for Service Stream (ASX:SSM), increasing the stock’s target price to A$1.20 from its previous target of A$1.15.

Following this adjustment, the company’s shares experienced an elevation of 5.8% on Thursday.

The brokerage firm maintains its expectation that fiscal year 2024 will be a milestone for Service Stream, courtesy of an improved balance sheet, group optimization benefits, and potential penetration into contiguous markets, which affirm the voice of confidence from Service Stream.

Besides, transport is readjusted in the first half and is set for further growth just due to seasonality in terms of O&M agreements as stated by Citi.

Five out of six analysts rate the stock ‘buy’ or higher, and one gave a ‘hold’ rating; their median target price stands at A$1.12 according to LSEG data.

So far, Service Stream’s stock has risen approximately 4% in this year-to-date.

Service Stream (ASX:SSM) is a network services company providing a complete, end-to-end solution for customers in the telecommunications and utilities sectors.