The company’s investor briefing has shown how the combined business is positioning to capture more work as Jacobs ECR is integrated. Credit Suisse remains comfortable that, pending a smooth integration, leverage to the controlled cost base and new scale will provide unique exposure to the global energy mix.
Cost synergies have been lifted to $150m, with the majority expected to be achieved in the first 12 months, a target the broker suspects could prove conservative. Credit Suisse maintains an Outperform rating and $18.20 target.
Target price is $18.20.Current Price is $13.53. Difference: $4.67 – (brackets indicate current price is over target). If WOR meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).