Citi cuts PT on Australia's Worley on lesser growth outlook, lower cash conversion

Worley

10/04/2024 23:04

** Analysts at Citi say Visible Alpha consensus assumes 0%
top-line growth (ex-procurement) in FY24 despite Worley's
 WOR.AX  guiding for “growth”
    ** Brokerage trims target price to A$20/shr from
A$20.50/shr; retains "buy" rating
    ** Citi assumes seasonality as a factor in aiding FY24
revenue for the construction materials supplier to be greater
than $10.2 bln
    ** Underlying NPATA is largely unchanged for FY24 but higher
by high-single digits in estimates for FY25/FY26 due to stronger
revenue assumptions, particularly procurement - Citi
    ** Brokerage trims target price based on lower cash
conversion outlook for WOR
    ** Seven of 10 analysts rate stock "buy" or higher, one
rates "sell" and two rate "hold"; their median PT is A$18.50 -
LSEG data
    ** WOR stock down 3.6% YTD, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))