WOR – Credit Suisse rates the stock as Outperform

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.

Sector: Energy.

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).

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →