The company has assessed the additional costs to complete the Murra Warra wind farm contract to be $45m. The additional obligations have arisen through the insolvency of its turbine partner.
Importantly, Downer EDI has secured possession and title to all equipment needed to complete the project.
UBS likes the solid underlying earnings growth outlook and maintains a Buy rating. Target is reduced to $8.15 from $8.22.
Sector: Commercial & Professional Services.
Target price is $8.15.Current Price is $7.50. Difference: $0.65 – (brackets indicate current price is over target). If DOW meets the UBS target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).