Ann: Taggart Global Preferred Contractor for US$2, page-11

re: Ann: Taggart Global Preferred Contractor ... broker notes:

Macquarie 21-Jun-13
Just before the Forge acquisition of Taggart goes through, Taggart has won a $221m contract in Canada to build a coal plant, which is a nice little bonus. FGE is guiding to flat FY14 revenues before Taggart with $900m of the order book in hand which, given the state of the market, is a good result and reflects FGE's diversified business, the broker notes.
Cashflows should allow for further acquisitions or dividends so despite the sector outlook, the broker rates the stock Outperform on a $6.78 target.

Citi 21-Jun-13
The broker notes Forge's recently acquired Taggart Global has picked up a US$221m EPC contract or Coalspur mines in Canada, which will contribute to earnings as early as FY14-15.

While good news, it has little impact on earnings forecasts as the broker was already factoring in contract wins of some sort or other. Citi notes contract coverage is now around 75% for FY14, which sets Forge up well for next year. Buy call and $5.60 price target maintained.