euroz reiterates buy

Excerpt from Euroz report.

The Nomad share price has staged a recovery of sorts, however still trades very cheaply compared to peers. In our view NOD has certainly been impacted by the general slow down and in particular, by the now common theme of delays causing longer periods between project tender and project award. We think 2009 guidance of $21m will be a stretch as a consequence. We have however, no reason to change our 2010 forecast of $14m and given NOD trades at 3.7x our downgraded 2009 NPAT expectation (around $18m), there is no question the stock is cheap. There remain some genuine opportunities for NOD, and contract wins on Gorgon are a very good chance, should it proceed, with upside beyond our forecasts. In the meantime we maintain our 12 month price target at 67c.

Cheers,
Z.