UGL has announced a review of its corporate structure. This surprised Macquarie as the company is only part way through a cost cutting program. The broker notes that a restructure or de-merger, if indeed it happens, will be a year away at least. For Macquarie, UGL has a big second half to deliver and requires contract wins in engineering/O&M to improve confidence.
The Underperform rating and $10.39 price target are maintained.Underperform
UGL Price at posting:
$10.23 Sentiment: Hold Disclosure: Held
