Australia's Austal rises, Citi upgrades citing long-term revenue growth

Austal

01/09/2026 06:50

** Shares of Australia's Austal ASB.AX rise as much as 10.9% to A$4.580, marking their strongest intraday session since August 14
** Stock hits its highest level since August 17
** Citi upgrades rating to "buy" and raises TP by 39% to A$5.75
** Brokerage says shipbuilder is no longer predominately a U.S. growth story, given the growth of its Australian order book from A$0.7 billion to A$5.6 billion
** Says management expects Australian shipbuilding revenue to more than double over the next five years and given the current contract, Citi sees a decade-plus growth runway
** "Austal Australia may increasingly be valued like a prime defence contractor rather than a traditional cyclical shipbuilder," says Citi 
** Stock down 34.9% YTD, including session's moves

 (Reporting by Shravya Marakini in Bengaluru)
 ((shravya.marakini@thomsonreuters.com;))