Maybank Securities analyst Eric Ong has upgraded his call on Civmec to “buy” after the Australian-based company announced that it secured new contracts and extensions worth A$600 million ($505.26 million) on July 23.

“In view of Civmec’s improving orderbook and medium-term earnings outlook, we upgrade the stock to ‘buy’ (from ‘hold’) with a higher target price of $1.05, based on 14 times FY2026 P/E,” Ong writes in his July 24 report. The analyst previously had a target price of 89 cents.

In Ong’s view, the contracts also reflect Civmec’s close ties with global mining group Rio Tinto and Australian-headquartered mining group Fortescue.