Market not appreciative of shipbuilder Austal's revenue potential, says Citi

Austal

03/11/2024 19:29

** Citi says market is not appreciating Australian defence
shipbuilder Austal Ltd's  ASB.AX  medium- to long-term revenue
upside potential
    ** Brokerage retains "buy" rating and price target of A$4.14
    ** ASB shares ended 4.5% lower at A$3.16 on Nov. 1, breaking
a five-day winning streak
    ** ASB in its AGM presentation on Nov. 1 said it has a
record order book of A$12.7 bln ($8.37 bln) and expects EBIT of
A$80 mln in FY25 vs A$56.5 mln in FY24
    ** Co expects "years of growing ahead" as order book
continues to grow
    ** Citi says EBIT guidance is inline with consensus and is
"pleasing" and has a "potential upside"
    ** ASB shares up 55.7% so far this year, as of last close,
significantly outpacing a 7% gain in the ASX All Ordinaries
index  .AORD 


($1 = 1.5172 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))