Covid has created some first half headwinds for Downer EDI but Macquarie believes investor focus is on re-opening, as state borders lift and restrictions ease. On that basis the broker shifts its earnings forecast skew more to the second half than is typical.
More “normal” conditions should be expected in the second half.
Target falls to $6.68 from $6.84 but Outperform retained given a positive outlook boosted by the energy transition.
Sector: Commercial & Professional Services.
Target price is $6.68.Current Price is $5.90. Difference: $0.78 – (brackets indicate current price is over target). If DOW meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
