Austal's (ASX:ASB) opportunities remain undiminished, following a recent shift in investor sentiment from skepticism to belief around execution, Euroz Hartleys said in a note Tuesday.

Euroz Hartleys maintained ASB's buy rating but raised the price target to AU$4.71 from AU$4.01, assuming AU$2.5 billion in revenue at an 8% earnings before interest and taxes (EBIT) margin over the medium term and a peak net debt of $300 million as the capital investment cycle plays out.

Valuations could exceed this target if Austal executes well, Euroz Hartleys said, adding that the revenue projections reflect long-standing vessel programs, which have been in various stages of award for some time.

Euroz Hartleys believes that the Austal's forecast does not fully account for income from strategic shipbuilding outcomes at its Henderson shipyard, as well as the ramp-up of the company's submarine module construction.

The expansion of support services and potential contributions from new technologies over time also present additional upside for Austal, the investment firm said.

Moreover, the recent large-scale commercial vessels in Asia provide substantial volume and overhead coverage, it added.

Austal's shares were up 2% in recent Wednesday trade.