Macq states the following: Severe stock price move today reflective of market fears that VNT loses entirety of Defence-related work; we think this is unlikely, particularly given a number of Defence contracts on foot with years left to run.
Defence has also awarded two contracts worth $173m pa to VNT over past 18 months during which investigations by ACCC have been proceeding. VNT was also awarded by Defence "Base Services Contractor of the Year" in November. We note that VNT has a 30+ year relationship with Defence. • Re contagion risk to other govt. related revenue; per statement of claim from ACCC, allegations appear narrowly contained to specific instances and contracts rather than evidence of systematic issues across VNT. These are also allegations at this point which are yet to be proven in court. We also note fairly independent operations of govt. dept's and states when comes to procurement and contractor selection.
VNT Price at posting:
$3.19 Sentiment: Hold Disclosure: Not Held
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