The Lendlease Group (ASX: LLC) share price was on fire yesterday as it surged 3.1% higher.
That's good news for shareholders, but I think there could be further share price growth ahead for the Aussie construction group.
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Why is the Lendlease share price surging?
2020 has not been a great year for Lendlease as its shares have underperformed the S&P/ASX 200 Index (ASX: XJO).
However, strong support for the construction and infrastructure sectors is good news for major players like Lendlease.
The federal government is expanding its existing $100 billion infrastructure plans with a further $10 billion allocated to spend in the sector.
Construction and major infrastructure projects including road and rail are key components of that plan. That to me says the Lendlease share price could be headed higher if it can secure some more major contracts.
Is now a good time to buy?
The Lendlease share price has slumped 34.0% to $11.84 per share this year as the coronavirus pandemic has hit profits.
However, Tuesday's Federal Budget announcement contained some great news for companies like Lendlease. That could mean that a 3.1% share price surge is just the start of a bigger run for the ASX share.
Lendlease has an $8.2 billion market capitalisation with a 2.8% dividend yield right now. I think it could be a chance to snap up a high-quality ASX infrastructure share for a good price.
Lendlease has had its fair share of troubles including a $350 million writedown of its engineering arm in November 2018.
However, I think the significant support in the Federal Budget could prove to be a turning point for the Lendlease share price.
Foolish takeaway
The Lendlease share price has had a tough time in 2020 but it could be turning a corner.
I believe strong government backing for the sector combined with existing robust relationships on major infrastructure projects at a state and federal level is good news for Lendlease.
