There was considerable competition for the US Navy’s FFG(X) programme, so although the loss to a competitor means we can’t lock in revenue forecasts for the next ten years it also means we don’t have to worry about margin for the next five. We have little doubt the modern Mobile shipyard will be well utilised for other Navy programmes. Meanwhile the six-vessel CCPB contract is an excellent win in Australia given ASB’s experience with these vessels. We will continue focusing on the EBIT line and cash flow ahead of the top line, and on this basis believe our retained BUY call is warranted.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
