Morgan Sindall's share price has rocketed 25% since it embarked on a spending spree two weeks ago.
The value of the contractor's shares has risen from 380p to more than 470p and there is no sign of the City's appetite for the stocks abating as analysts believe that the group is still good value.
Two weeks ago, Morgan Sindall bought Miller's civil engineering division for £20m and followed that with an agreement in principle to buy Carillion's social housing arm.
Investors believe that the deals, which launch Morgan Sindall into the lucrative civil engineering sector and make the group the UK's largest social housing operator, are affordable and will enhance the company.
Granville Baird analyst Mike Foster said his target price for the group was 530p. He said after that, investors would want more evidence of future growth.
