Buy Downer EDI – Algo Signal Update

Our Algo engine generated a recent buy signal in Downer EDI and we’re encouraged by the fundamentals supporting solid future earnings growth.

The outlook for DOW’s base business is positive, with a favorable
backdrop across virtually all of Downer EDI’s markets including infrastructure, renewables,  resources, health & government projects.

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FY18 guidance to be achieved with 10%+ eps growth expected in FY19.

Based on FY19 forecasts we anticipate $11.5b in revenue, EBIT $500m and  DPS $0.29, placing DOW on a forward yield of 4.1%.

ASX:DOW

 

Author: Leon Hinde

Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.

PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:

· Deposit Products
· Securities
· Derivatives
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks