The company has won the contract for Koodaideri. Deutsche Bank believes the win was already factored in and, although the contract size is close to forecasts, at $150m over 80 weeks it is likely to be a disappointment to consensus expectations.
The broker marginally reduces revenue forecast for FY20 because of the current outlook and the expectation the company will face capacity constraints. Rating is downgraded to Sell from Hold and the target is steady at $2.31.
Sector: Capital Goods.
Target price is $2.31.Current Price is $2.82. Difference: ($0.51) – (brackets indicate current price is over target). If NWH meets the Deutsche Bank target it will return approximately -22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
