Citi downgrades earnings estimates on Australia's Worley

Worley

14/05/2024 19:31

** Analysts at Citi downgrade earnings view on Australia's
Worley  WOR.AX  due to final investment decision delay for North
America's Venture Global CP2's engineering, procurement,
construction LNG contract 
    ** Brokerage downgrades Australian engineering firm's core
NPAT estimates for FY24, FY25 by 12% and 14%, respectively, due
to high amortization and lower revenues
    ** Adds downgraded core NPAT as Citi delayed CP2 final
investment decision by 12 months to H2 FY25 
    ** Now model CP2 on standalone basis, assuming around A$6
bln ($3.97 bln) contract value and near 6.5% margin (including
procurement) - Citi
    ** Brokerage retains "buy" rating and a price target of
A$20/share
    ** Seven of 11 analysts rate the stock "buy" or higher,
three "hold" and one "sell" or lower; their median PT is A$18.19
– LSEG data
    ** Stock down 12.7% YTD, as of last close


($1 = 1.5101 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com))