SRG Global (SRG)Rating: Buy | Risk: High | Price Target: $1.20
Event: SRG Global (ASX: SRG) has secured $125m of contracts in the Energy and Resources sectors across Australia. Financial year to date contract wins now total circa $776m and follow $1.2b wins in FY23. Tenders & Pipeline total circa $6.5b. We forecast SRG to deliver EBITDA growth of 22.7% in FY24 versus comparable companies which are expected to deliver growth of around 17.3%. Despite this, SRG trades at an FY24 EV/EBITDA multiple of 4.8x versus peers at around 6.5x (both based on FactSet consensus). SRG is also trading well below our unchanged price target of $1.20 per share. Accordingly, we retain our BUY rating.
SRG Price at posting:
88.5¢ Sentiment: Hold Disclosure: Held
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