Downer EDI has disclosed that its partner at the Murra Warra wind farm, Senvion, has filed for self-administration in Germany. Senvion is responsible for the manufacture, transport, erection, and commissioning of the turbines and Downer for the balance of plant works.
Downer’s work is substantially complete and on schedule and budget but it remains joint and severally liable for the project. The company will be assessing whether there is any financial impact on FY19 guidance. Deutsche Bank maintains a Buy rating and $8.26 target.
Sector: Commercial & Professional Services.
Target price is $8.26.Current Price is $7.25. Difference: $1.01 – (brackets indicate current price is over target). If DOW meets the Deutsche Bank target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
