Wagners Holding Co has won a $140m contract to supply precast concrete for 9.8km of twin tunnels for the Sydney Metro to Western Sydney Airport project, starting late 2022.
The tunnels will connect St Marys with the Western Sydney aerotropolis and the Western Sydney Airport.
Macquarie says earnings from the contract will be skewed towards the second half of FY23 and the first half of FY24.
EPS forecasts rise 0% in FY22; 19% in FY23; and 18% in FY24.
Outperform rating retained. Target price rises to $1.85 from $1.75.
Sector: Materials.
Target price is $1.85.Current Price is $1.33. Difference: $0.52 – (brackets indicate current price is over target). If WGN meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
