The shares have recently outperformed and UBS downgrades to Neutral from Buy. The share price has increased around 20% in the year to date. The company has reiterated guidance for FY20 net profit of around $365m.
Downer EDI has indicated that cash conversion in FY20 would not be as strong as previously because of the impact of the Murra Warra wind farm, the run down in NBN/LNG projects and higher cash costs. UBS reduces the target to $8.15 from $8.35.
Sector: Commercial & Professional Services.
Target price is $8.15.Current Price is $8.02. Difference: $0.13 – (brackets indicate current price is over target). If DOW meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).