First half earnings slightly exceeded forecasts. Morgans observes tender activity is at record levels and supports the revenue and margin growth that is incorporated into forecasts. The broker remains cautious about the trajectory, nonetheless, given the lumpiness of activity in some geographies and flat pricing.
Morgans believes the bulk of the recovery post repairs to the balance sheet has been realised. Medium-term upside is linked growth in market share and corporate appeal. Target is reduced to $0.26 from $0.27. Hold maintained.
Sector: Capital Goods.
Target price is $0.26.Current Price is $0.25. Difference: $0.01 – (brackets indicate current price is over target). If ANG meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).