Shipbuilder Austal slips a day after soaring 20% on $450 mln US contract

Austal

17/09/2024 03:38

** Shares of Australian shipbuilder Austal  ASB.AX  drop as
much as 3.9% to A$2.595, marking their biggest intraday pct drop
since Sept. 9
    ** ASB stock advanced 20.5% on Monday after the defence
contractor said its U.S. unit had been awarded a $450 mln
contract to expand submarine module production capacity
    ** Citi analyst Sam Teeger says contract is a positive
surprise, making the stock "appears cheaper than it already
does"
    ** Brokerage estimates at current share price, ASB is
trading at a 40% discount to its future net tangible assets
(NTA) once submarine capex is completed
    ** Citi retains "buy" rating and PT of A$4.14
    ** More than 1.3 mln ASB shares change hands on Tuesday, vs
the 30-day average of 666,648 shares
    ** ASB among top 10 losers in the ASX All Ordinaries index
 .AORD 
    ** Stock up 28% this year, significantly outpacing a ~7%
gain in the ASX All Ordinaries index 

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