outperform rating

[Dow Jones] Transfield (TSE.AU) Outperform rating, A$3.47 price target retained by Macquarie. Notes FY adjusted net profit of A$123.6 million vs A$117.4 million expected by Macquarie. Says cash flow was outstanding, thanks to focus on working capital and TSE remains well within its debt covenants. "Transfield's earnings stream is the most defensive of the larger services companies with less than 15% of revenue construction based and a forward revenue cover of over 3 years," says broker. "With a more robust balance sheet, investors will be able to consider Transfield based on the underlying business value." TSE last up 9.2% at A$3.80.(DWR)