Austal has announced a resolution of US investigations that will incur up to A$48M in penalties and associated costs. The marginal impact on our valuation, which falls from $2.90 to $2.86, is outweighed by Austal now being able to have an undistracted focus on the significant opportunity pipeline. We see little risk to Austal maintaining its standing as a contractor to the US Navy but will look for more detail in results commentary on upcoming capex and funding, now more pertinent in the light of this fine. BUY maintained.
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