Following the issues with the Sunraysia contract, added uncertainty around a NZ contract has led us to be more conservative with our forecasts. We expect weak interim profit and cash flow numbers. Earnings adjustments, together with a $7m Homeground impairment, sees our valuation fall to $0.90 (prior $1.10). While ahead of the current share price, we maintain a HOLD call; contracting is risky, and we would prefer current uncertainties to be resolved, particularly given the recent departure of the CFO, before revisiting.
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.