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ASB - Citi rates the stock as Buy

PUBLISHED

2022-05-03

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After reviewing the US Navy’s 2023 justification book, Citi believes new US contract awards seem likely for Austal. Should the US Navy order additional Medical Ships, upside to the broker's medium-to long-term forecasts is expected.

Nonetheless, the analyst believes the company needs to win a major shipbuilding program to fully offset the wind-down of the
Littoral Combat Ship (LCS) program. The Buy rating and $2.35 target are retained.

Sector: Capital Goods.

 

Target price is $2.35.Current Price is $2.08. Difference: $0.27 - (brackets indicate current price is over target). If ASB meets the Citi target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).