Despite a number of studies and significant pending project work, at this stage FY20 lacks visibility. We pull back next year’s forecasts as a result, and our revised blended valuation falls to $1.10 (prior $1.26). Earnings lumpiness is to be expected for smaller contractors, thus in our opinion a longer term view is appropriate. GNG is well-regarded and likely to win its share of available work, so we expect EBITDA reversion above current levels in later years. On this basis, despite short term uncertainty, we upgrade to BUY (prior HOLD).
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