Downer EDI – Algo Buy

Downer EDI is now under Algo Engine buy conditions, following the entry signal at $5.15. The stock is now included in our ASX 100 model portfolio.

The company is making progress on its urban growth strategy and the divestments within the mining services sector are helping to sure up the balance sheet and de-risk the business outlook.

We see scope for double digit EPS growth into FY22 & FY23.

,

Downer EDI – Algo Buy

Downer EDI is now under Algo Engine buy conditions, following the entry signal at $5.15. The stock is now included in our ASX 100 model portfolio.

The company is making progress on its urban growth strategy and the divestments within the mining services sector are helping to sure up the balance sheet and de-risk the business outlook.

We see scope for double digit EPS growth into FY22 & FY23.

,

Downer EDI – Algo Buy

Downer EDI is now under Algo Engine buy conditions, following the entry signal at $5.15. The stock is now included in our ASX 100 model portfolio.

The company is making progress on its urban growth strategy and the divestments within the mining services sector are helping to sure up the balance sheet and de-risk the business outlook.

We see scope for double digit EPS growth into FY22 & FY23.

,

Downer EDI

Downer EDI is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

The company reaffirmed FY20 net profit after tax guidance of $365m, which represents 7% growth on the same time last year.

Dow trades on a forward yield of 3.7%.

We see value in accumulating the stock within the $7.50 – $8.00 price range.

 

 

Downer EDI – Buy Signal

Downer EDI is now under Algo Engine buy conditions and was added into our ASX 100 model portfolio.

We are comfortable with DOW’s broader business, given the track record of earnings delivery. The recent issues DOW encountered within the solar and engineering projects were absorbed within FY19 guidance.

FY 20 earnings should deliver 8% EPS growth, which places the stock on a forward yield of 4.5%.

Downer EDI offers value within the $6.75 – $7.00 range.

 

Boral, CIMIC & Downer EDI

$280 billion in announced public infrastructure projects by 2020 in Australia, will help support growth for Boral, Downer EDI and CIMIC.

Boral & CIMIC are showing  Algo Engine sell signals, whereas, DOW is under a a recent Algo Engine buy signal.

All three names are attractive on a fundamental basis, however, the deep discount in Boral makes it our preferred allocation.

 

 

 

Downer EDI – Take Profit

Downer EDI recently moved into Algo Engine sell conditions after forming a new lower high at $7.50.

Downer reported 1H FY19 revenue of $6.6bn, EBITDA of $413mn and underlying NPATA of A$146mn, up 11% on the same time last year. Full year FY19 earnings are likely to be around $330mn.

We will take another look at the buy-side of Downer on a pullback below $6.80.

 

 

 

Buy Downer EDI

During our Opportunities in Review webinar series, we’ve been suggesting Downer EDI as a buy at $6.75.

Downer EDI has confirmed 13% EPS growth for the year ahead, which should support a $7.50 to $8.00 initial price target.

Downer EDI