Update shared on22 Aug 2025
Fair value Increased 9.81%Despite a notable downgrade in consensus revenue growth forecasts and a higher future P/E ratio, analysts have raised Downer EDI’s fair value estimate from A$6.21 to A$6.72.
What's in the News
- Downer EDI authorized a share buyback plan, with approval to repurchase up to 33,578,684 shares (5% of issued capital) through on-market purchases, expiring June 2026.
- Declared a fully franked final ordinary dividend of AUD 0.141 per share for the six months ended June 2025.
- Secured a Project Alliance Agreement as part of a consortium to deliver the southern section of the taki to North of Levin highway project in New Zealand, with expected revenue of NZD 311 million (AUD 280 million); construction to begin Spring 2025.
- Awarded an Integrated Work Package with the Capability, Acquisition and Sustainment Group, supporting Australian Defence projects for up to four years, valued at approximately $220 million.
- Secured a three-year, $200 million contract extension with AusNet Services for gas network operations, maintenance, and related services, commencing April 2026.
Valuation Changes
Summary of Valuation Changes for Downer EDI
- The Consensus Analyst Price Target has risen from A$6.21 to A$6.72.
- The Consensus Revenue Growth forecasts for Downer EDI has significantly fallen from 4.6% per annum to 3.6% per annum.
- The Future P/E for Downer EDI has significantly risen from 12.70x to 14.34x.
Disclaimer
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