SVW – UBS rates the stock as Buy

Seven Group Holdings will be raising $500m via new equity to provide balance sheet flexibility and reduce net debt to $2.1bn from $2.6bn. The group has reiterated its FY21 guidance that conservatively implies a 50/50 split for the two halves of the year Coates and a 52/48 split for WesTrac.

UBS thinks the second-half outlook for WesTrac will be influenced by fleet delivery scheduling and shipping while the second half for Coates is still subject to the phasing of east coast infrastructure activity.

Buy rating retained with the target dropping to $27.35 from $27.50.

Sector: Capital Goods.

 

Target price is $27.35.Current Price is $23.43. Difference: $3.92 – (brackets indicate current price is over target). If SVW meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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