NRW Holdings has announced the sale of its mobile mining assets to Boggabri Coal for $81m, which will see group pre-tax earnings decrease by -1%-2% and net debt reduce to $34m.
The broker remain cautious on margin compression in the near term though notes the company continues to benefit from a large order book and tender pipeline. The analyst maintains the Outperform rating and $2.10 target price.
Sector: Capital Goods.
Target price is $2.10.Current Price is $1.82. Difference: $0.28 – (brackets indicate current price is over target). If NWH meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
