NRW Holdings' (ASX:NWH) fiscal 2025 earnings before interest and tax are expected to remain intact at AU$207.8 million, said Euroz Hartleys in a Thursday note.
On Wednesday, the company said that proposed legislation by the South Australian government could significantly impair unit Golding Contractors' security over the assets of Whyalla Ports.
The move may undermine the unit's ability to recover AU$113.3 million owed by OneSteel Manufacturing, which is currently in administration, the filing said.
The research firm believes that even after the AU$113 million write-off, the company is currently trading at an enterprise value to earnings before interest, tax, depreciation, and amortization multiple of about 7 times, while the sector average lies at 9 times.
The research firm said it would decrease its price target to AU$3.93 if the receivable proves non-recoverable.
Euroz Hartleys' buy rating and price target of AU$4.23 on NRW Holdings are under review.