Cimic Group’s third-quarter sales, operating income and net profit figures were in-line with UBS’s estimate but the operating cash flow conversion, impacted by the slowdown of revenues and new work due to covid-19 and reduced debtor factoring, was weaker than expected.
No formal earnings guidance was provided. UBS expects better operating conditions and momentum going into the fourth quarter.
UBS maintains its Neutral rating with a target price of $23.
Sector: Capital Goods.
Target price is $23.00.Current Price is $22.17. Difference: $0.83 – (brackets indicate current price is over target). If CIM meets the UBS target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
