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.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。