The company has won two more solar projects, worth around $50m. Macquarie expects these contracts will contribute strongly to FY18 in earnings.
The broker now estimates the company has FY17 revenue forecasts of $1.1bn in hand when combined with regular recurring income. A strong lift is expected in FY18, given the full workload that will be carried into that year.
Outperform retained. Target is trimmed to $3.29 from $3.33.
Sector: Capital Goods.
Target price is $3.29.Current Price is $3.08. Difference: $0.21 – (brackets indicate current price is over target). If RCR meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).