UBS says Aussie Downer's unit growth ambitions signal big upside; lifts PT

DOWNER EDI

27/11/2025 19:02

** Downer DOW.AX reaffirmed FY26 guidance at its investor day and set out long-term growth ambitions via FY30, with UBS noting margin gains will hinge on tighter risk controls, stronger Energy and Utilities (E&U) unit earnings, and others

** Forecasts integrated infrastructure services provider's EBITA growth of 7% in FY26 and 4% in FY27

** Adds, DOW mapped out FY30 revenue CAGR and margin targets across key units, with the E&U unit standing out on their rev growth and margins outlook being well above Visible Alpha (VA) consensus estimates

** Brokerage estimates the E&U ambitions imply about 60% upside to FY30 EBITA vs VA consensus, noting the unit is emerging from a reset phase marked by thin margins, others

** UBS lifts its PT to A$8.00 from A$7.50, while keeping 'Neutral' rating

** Stock up ~47% so far this year as of its previous close

 (Reporting by Kumar Tanishk in Bengaluru)

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