As FY20 kicks off we reassess the outlook and remain confident in top line growth. At the interims DCG had >$400m locked in (contracted and preferred) for FY20 and has won work subsequently which will add to this number. We expect a couple of good revenue years on the back of pipeline opportunities across infrastructure, resources and renewables sectors. Key will be margin; we are less sure on this number given a greater proportion of work in potentially lower margin and/or new sectors, however the recent upward trend is a positive sign. We maintain our BUY call and $1.20 valuation heading into the new financial year.
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.