Speaking last week on the same day as Trump announced his new tariff agenda, Firetrail Investments’ Matthew Fist, in a presentation to financial advisers, said he was particularly bullish on ASX-listed defence industry construction contractor, Duratec.
“There aren’t many things you can be certain of in this environment. But one thing I can tell you with absolute certainty today is that global defence spending is rising,” Fist said.The fund manager said Duratec was set to benefit from the ramp-up in spending and is expecting the company to be awarded more construction work in the next few years after it recently completed works on an Australian navy base on Garden Island, off the coast of Western Australia.
“We’re 70 per cent above consensus in FY28 for defence revenue. We expect that Duratec will experience the same sort of share price appreciation over the next 18 months as these contracts are awarded,” he said.
LSN Capital’s Nick Sladen told The Australian Financial Review on Monday that he also owned Duratec, as well as shipbuilder Austal, betting that the stocks will continue to benefit from the increase in defence spending.“Defence globally is going up materially. Australia is one such country that is increasing defence significantly... there’s increased sovereignty, and an internal focus on defence,” he said. Sladen, a long-time investor in Duratec, said its exposure to the domestic economy made it less susceptible to global risk and more attractive against the backdrop of heightened global tensions.
DUR Price at posting:
$1.57 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)