SRG’s recent results and FY24 outlook provide strong evidence that SRG is delivering on its strategy and is a lower risk investment when compared to many construction and mining service peers given the recurring nature of a large portion of its revenue. We additionally expect the macro-outlook to remain strong, across infrastructure, asset services, mining and select construction. Recent acquisitions provide SRG with even greater leverage to these tailwinds and support what was already strong organic growth. SRG is trading at a material discount to our $1.15 per share price target and at around 3.0x FY24 EV / EBITDA. Accordingly, we retain our BUY rating.
SRG Price at posting:
63.5¢ Sentiment: None Disclosure: Not Held
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