UBS notes WesTrac’s revenue is up 15% year-on-year and Coates revenue up 2%. WesTrac has recently won 2 major truck and ancillary fleet orders with Fortescue Metals ((FMG)).
UBS expects these orders will be delivered through FY20-23 and this underpins forecasts for revenue growth over the next three years. Buy rating and $19 target maintained.
Sector: Capital Goods.
Target price is $19.00.Current Price is $17.35. Difference: $1.65 – (brackets indicate current price is over target). If SVW meets the UBS target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
