Heading into 2019 and the interim reporting season, we have reviewed our forecasts and valuation for Decmil. Given exposure to government-funded infrastructure and capex spend by the majors in resources, we remain positive on top-line growth potential. Uncertainty relates more to margin, particularly with rapid revenue growth, and we build more caution into our forecasts and valuation calculations. Our blended valuation of $1.10 (prior $1.20) is well ahead of the current price, although investors will likely need reassurance on solar contract risk, and evidence of a stronger 2H19, before reacting to our maintained BUY call.
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