Austal (ASX:ASB) is forecasted to see a significant increase in revenues from Australasia over the medium term as the landing craft heavy and medium programs ramp up, Euroz Hartleys said in a Friday note.

The firm's unit Austal Defense Shipbuilding Australia was awarded an around AU$4 billion contract to construct eight landing craft heavy vessels, under the strategic shipbuilding agreement with the Commonwealth of Australia. The award increases Austal's orderbook to record levels and provides revenue visibility and earnings support for the next 12 years.

Euroz Hartleys maintained its buy recommendation on Austral and kept its AU$7.71 per share price target.