Australia's Downer gains as Morningstar raises valuation on strong contract intake

DOWNER EDI

03/02/2026 24:49

Updates

** Shares of Downer EDI DOW.AX rise as much as 1.3% to A$8.11 in early trade, hitting their highest since January 22

** Morningstar lifts fair‑value estimate for the urban services group by 4% to A$7, citing strong run of contract wins last year

** Highlights DOW ended HY with two major contract wins, bringing the total announced wins to A$5.1 billion ($3.55 billion)

** Says given that individually announced deals typically make up only a third of the eventual total, DOW could still surpass its five-year average for contract awards by ~50% in FY26, even if no further wins were announced

** Morningstar, however, cautions that recognising such gains now may be premature given inherently lumpy timing and scale of contract awards; adds drawing longer‑term conclusions for the same reasons could also prove risky

** Stock up 1.5% YTD, including the day's moves

($1 = 1.4358 Australian dollars)

 (Reporting by Kumar Tanishk and Nikita Maria Jino in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))