ASL’s 1H18 results were solid, with earnings ahead of expectations and a robust balance sheet enabling targeting an exceptional pipeline in Africa. Normalised EBITDA was $82m (we were thinking $78.5m), gearing dropped below 20%, and the Company has cash and available facilities in excess of $400m. Based on 1H18 numbers and commentary, we up our FY18 normalised NPAT forecast to $51.5m (prior $43.9m) and increase our longer term numbers. Our blended valuation climbs to $2.75 (prior $2.28). The current share price reflects a strong business with excellent prospects and we maintain a hold call.
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