Austal Worth More Than Current Share Price After Sell-Off, Euroz Hartleys Says, Shares Up 4%

MT Newswires Live
12/19

Austal (ASX:ASB) has seen a sell-off after recent highs of around AU$8.59, but nothing on the ground has changed operationally, according to a Thursday Euroz Hartleys note.

The company on Thursday said it was awarded a AU$1.03 billion design and build contract for landing craft medium (LCM) vessels under the firm's strategic shipbuilding agreement with the Commonwealth of Australia.

Euroz Hartley believes that at full ramp-up, and with good execution, ASB shares are worth a "good deal" more than the current share price.

The research firm added that the fundamental investment case for ASB has firmed up further, with the resolution of T-ATS, financing arrangements finalized, and Australian Defense requirements firming up.

Euroz Hartleys maintained its buy rating and raised its price target to AU$7.71 from AU$6.57.

The company's shares rose 4% in recent Friday trade.

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