NRW Holdings has been awarded the $26.5m storage facility extension contract at Nanmuldi and the $60m solar farm contract at Koodaideri.
While cautious about margin compression in the short term Macquarie believes the company will continue to benefit from a large order book and tender pipeline.
This should enable solid revenue and earnings growth over the medium term. Target is raised to $2.15 from $2.10 and an Outperform rating is maintained.
Sector: Capital Goods.
Target price is $2.15.Current Price is $1.72. Difference: $0.43 – (brackets indicate current price is over target). If NWH meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
