First half results were below Credit Suisse forecasts at the revenue line while underlying net profit was in keeping with estimates. Improved trading conditions characterised the half-year with new work accelerating to above pre-pandemic levels.
Project momentum appears to be building and the broker suspects this will continue into the second half. Yet, in NSW, while the state government committed to recommence construction activities from July 31, a two-week extension of the ban could further affect net profit by -$15-20m, the broker estimates.
Credit Suisse upgrades to Outperform from Neutral and raises the target to $23.60 from $ 21.90.
Sector: Capital Goods.
Target price is $23.60.Current Price is $19.85. Difference: $3.75 – (brackets indicate current price is over target). If CIM meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
