expect it to run up until dec , page-3

:::: water :: social infrastructure Cardno is a heavily diversified Social Infrastructure company with strong earnings growth and high dividend.

I think it has been abit lost until now as it's only now starting to show up as the water situation starts to bite world wide.

Here are some of their water services:
Waste Management
Flood and Waterway Studies
Environmental Impact Assessment
Rehabilitation
Water Quality
Water Sensitive Urban Design
Catchment Management
Water and Wastewater Treatment
Dams and Reservoirs
Water and Sewer Distribution
Catchment Management
Strategic Planning
Capital Works Scheduling
Water Cycle Management
Demand Management

Here are some of their local and overseas water management projects:
Noosa Heads wastewater treatment plant, Sunshine Coast, QLD
Lae City Water Supply Project, Papua New Guinea
Olympic Park storm water solutions, Sydney, NSW
Warragamaba Dam floodplain modelling, NSW
Bojonegara Water Supply, Indonesia
Herehere Irrigation Scheme, Gulf Province, Papua New Guinea
Rural Water Supply Project, Sarawak, Malaysia.
Hinze Dam Stage 2, QLD

http://www.cardno.com.au/capability_environment.htm
http://www.cardno.com.au/capability_water.htm

"Cardno Limited is a dynamic infrastructure services group with an operating track record
extending over 60 years. Through organic growth and selected mergers and acquisitions, the firm now
employs around 1400 people in Australia, the Asia-Pacific region, UK, Africa, Middle East and the USA. The
company’s vision is to be a world leader in the provision of professional services for the improvement of
physical and social infrastructure. We are an international company, listed on the Australian Stock Exchange"

Credit Suisse Jul 06:
The analysts have initiated coverage on the stock with an Outperform rating and a target of $6.20.

Credit Suisse is of the view that the company will generate EPS growth of around 20% per year for the next two years, for FY06 EPS growth is expected to be 55%.

UBS Jul 06:
It rates Cardno (CDD) as Buy 2 with a price target of $5.20, noting the outlook for its primary business of engineering construction looks strong for at least the next two years.

Over the last few years it notes management has demonstrated an ability to integrate new acquisitions into its existing operations, which is important not only because it has made a number of such acquisitions recently but because it looks set to continue expanding given the highly fragmented industry in which it operates.

Factoring in additional expansion, the broker expects earnings per share of 33c this year, but sees this increasing to 38c in FY07 and 42c in FY08, which equates to a Price/Earnings (P/E) ratio of 13.6x earnings this year and 10.7x in FY08. This puts the broker ahead of median forecasts according to Thomson One Analytics, who sees earnings coming in at 30c this year, 35c in FY07 and 33c in FY08.

The average price target is $5.48, while the median target according to Thomson One is $5.27. This compares to the broker's valuation range of $5.00-$5.50 and a last closing price of $4.50.


I would expect Cardno to reach a target of around $5.50 by Jan-Feb07, which is slower than hoped with it's current strong earnings growth and dividend, but the market climate at the moment seems to be slowing things alittle.