Tony Paterno, Ord Minnett BUY – Service Stream (SSM)
The recent analyst day presentation highlighted Service Stream’s increasingly diverse portfolio of infrastructure maintenance projects, the depth of expertise required to service these projects, longer average contract duration and improving risk profile as the company cycles away from fixed price, lump sum work. Service Stream carries $5 billion of work in hand, excluding contract extensions, underpinned by unprecedented levels of investment from government and private asset owners. We prefer companies with nearer term earnings visibility and positive earnings momentum. We believe SSM’s free cash flow generation deserves a higher multiple.
SSM Price at posting:
91.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)