Wagners is taking a conservative view of the market in south-east Queensland, which Credit Suisse welcomes. The company has raised $40m in equity and has noted continued delays with major projects.
Competition is also likely to hinder the utilisation of concrete plants, the broker notes. Credit Suisse retains an Outperform rating and reduces the target to $2.05 from $2.40. No dividend is expected in FY20/21.
Target price is $2.05.Current Price is $1.84. Difference: $0.21 – (brackets indicate current price is over target). If WGN meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).