Citi raises PT for Aussie's Austal on US-Australia defence outlook

Austal

24/06/2025 23:46

** Analysts at Citi "find it difficult to be negative" on Austal's ASB.AX stock in the near term given planned increases in defence spending in the U.S. and Australia, among other scenarios

** Brokerage increases target price to A$6.10/shr from A$4.09/shr; changes rating to "neutral/high risk" from "neutral"

** We think Austal is well-positioned to benefit from future contract wins with the U.S. Navy based on President Trump's commentary around resurrecting U.S. shipbuilding industry — Citi

** With Hanwha 000880.KS having been granted regulatory approval to increase its stake in ASB to 100% earlier this month, Citi sees increased potential of an acquisition by Hanwha

** Stock up 94.5% YTD, as of last close

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com))