10:36 AM EDT, 06/13/2025 (MT Newswires) -- K-Bro Linen ( KBRLF ) stock is "heating up" with its transformational $199 million Star Mayan acquisition, writes Stifel, raising the company's price target to $50, from $46, with a Buy rating.

Analyst Justin Keywood notes that the acquisition, which was funded by a fully subscribed, $80.7 million bought deal financing and $134 million four-year amortizing loan, propels K-Bro to the #3 national UK laundry provider (~10% share).

K-Bro has now completed five acquisitions since 2023, but its valuation has declined with limited liquidity and an unfavorable backdrop for small-caps, Keywood noted. "We see favorable growth quarters ahead, improved liquidity and medium-term M&A, including potential U.S. expansion as re-rating shares."

Price: 35.77, Change: -0.28, Percent Change: -0.78