Civmec's (ASX:Civmec) acquisition of Luerssen Australia represents a potentially new revenue line for the Company and a lucrative opportunity in the space of sovereign shipbuilding, subject to execution, said Euroz Hartleys in a Friday note.

The company said it will acquire 100% of the shares in Luerssen Australia, including all assets, employees, and licences, from NVL Australia for a cash consideration of AU$20 million, according to a Thursday Australian bourse filing.

The research firm noted that the opportunity for Civmec in defense at Henderson, a major industrial and shipbuilding hub in Western Australia, remains enormous, while the situation around the ultimate delivery of these enormous opportunities remains fluid.

Euroz Hartleys has a buy rating on Civmec with a price target of AU$1.24, although both the rating and the price target are under review.

The company's shares rose 1% in recent Friday trade.