Why Fastbrick Shares Rose 34% today

The share price of Fastbrick Robotics Ltd [ASX:FBR] has jumped 34.29% at time of writing thanks to a massive deal.

What deal?

Fastbrick has agreed to build a minimum of 50,000 homes by 2022 in Saudi Arabia, with a target of half a million homes by 2022. No small feat, but it represents a big win for this Aussie tech company.

Fastbrick will need to provide 100 of their Hadrian X bricklaying robots to make it happen. It’s an ambitious goal, but one the Saudi government is desperate to facilitate. The country is currently in the midst of a housing shortage and is desperately trying to remedy the problem.

Can Fastbrick make it happen?

The finer details on the deal are yet to agreed upon, with the company commenting:

Final pricing in relation to the Hadrian X robots has not yet been settled however initial pricing discussion indicate a significant potential opportunity for the Company.

What’s more, the agreement could lead to more business opportunities in the region. Fastbrick has its sights set on a few potential markets already. There is no doubt this could be a breakout moment for the company.

It also comes roughly a month after Fastbrick signed a deal with Caterpillar Inc. [NYSE:CAT], which develops and sells manufacturing machinery.

For now, investors will have to wait and see how the deal unfolds. But both the company and its shareholders can take a moment to celebrate.


Ryan Clarkson-Ledward
Junior Analyst, Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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