UBS believes NRW Holdings can maintain revenue of around $2.2bn in FY22, irrespective of whether several major iron ore projects will be completed in FY21.
Despite the fact iron ore capital expenditure from major miners is likely to decline, overall levels of expenditure remain healthy, in the broker’s view. The company has also built up its public infrastructure capability.
UBS transfers coverage to another analyst, retaining a Buy rating and reducing the target to $2.37 from $3.00.
Sector: Capital Goods.
Target price is $2.37.Current Price is $1.78. Difference: $0.59 – (brackets indicate current price is over target). If NWH meets the UBS target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
