BUZZ-Australia's Worley extends gains, analysts upbeat on potential US tailwinds

Reuters
02-27
BUZZ-Australia's Worley extends gains, analysts upbeat on potential US tailwinds

** Australian engineering firm Worley Ltd WOR.AX rises 1.6% to A$15.705, its highest level since April 29, 2024

** Worley on Wednesday announced on-market share buyback of A$500 million ($315.45 million)

** Co reported 1H25 underlying NPATA of A$216 million ($136.27 million); reaffirmed outlook of targeting low double-digit EBITA growth for FY25

** "What's happening in the U.S. is a net positive" for Worley, CEO Chris Ashton said, referring to U.S. President Donald Trump's new energy policy

** WOR shares ended 10.3% higher at A$15.460 on Wednesday, their highest levels since May 8, 2024

** "Politics is at risk of becoming a tailwind in 2025 as energy affordability drives outcomes likely to benefit Traditional (business)," Citi analysts say, referring to its oil, petrochemical business

** Jefferies hikes PT to A$18.10 from A$16.20, retains "buy" rating

** Jefferies says "valuation looks appealing with risk reward skewed to the upside at current levels"

($1 = 1.5850 Australian dollars)

(Reporting by Sameer Manekar in Bengaluru)

((Sameer.Manekar@thomsonreuters.com;))

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