Citi raises PT, profit estimates for Australia's Austal after strong FY results

Austal

31/08/2025 23:46

** Citi raises price target on Australia's Austal ASB.AX by 12% to A$7.86 after the shipbuilder and defense vessel maker's FY profit beat estimates

** Brokerage lifts co's FY26 NPAT estimate by 10% driven by incremental contribution from manufacturing submarine module,

** Also increases FY27 NPAT estimate by 56% after reviewing U.S. shipbuilding assumptions

** Citi says ASB is well-placed to benefit from rising defense spending in the U.S. and Australia, and notes that co is likely to announce construction contracts for medium and heavy landing craft soon

** Brokerage sees increased potential that Australia's FIRB will allow South Korea's Hanwha to raise its stake in Austal, and the increased probability of a takeover may provide valuation support to ASB

** As of last close, ASB stock up more than 150% YTD

 (Reporting by Himanshi Akhand in Bengaluru; editing by Diane Craft)

 ((Himanshi.Akhand@thomsonreuters.com;))