PEA has announced it is on track to beat its prior FY19 EBITDA guidance of $60-61m. It now expects EBITDA ~$65m, well up on original guidance of $54-55m provided in August last year. Contract Power has proved a valuable addition, with the greater diversity and the introduction of an EPC capability being partly responsible for the strong growth. While our FY19 numbers have been increased to match guidance, we have left FY20+ unchanged pending further detail at full year results. PEA has a well-managed, strong business model that provides healthy recurring revenue under long-term contract. Its performance continues to underpin our positive view, and we maintain a BUY call on a slightly higher blended valuation of $0.80 (prior $0.78).
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