From our Monday “opportunities in review” webinar, CIMIC was a high conviction buy idea heading into earnings season.
The strong share price reaction to last week’s 1H profit announcement sent CIMIC shares 20% higher.
The result came in ahead of analysts forecast with revenue growth and profit growth of more than 10%.
1H Revenue +11% to $6.9 billion, EBITDA of $794 million +11% and NPAT $363 million +12% and on the same time last year.
Whilst the stock price now looks full value based on a forward yield of 3.3%, we continue to like the longer-term fundamentals.