Morningstar - CIMIC Group Limited (CIM) Fair Value Upgraded 9% to AUD 24 After a Deeper Dive Into Earnings Drivers

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Morningstar

Mark Taylor

EUR 101.80 For Business Accounts Only

Fair Value Upgraded 9% to AUD 24 After a Deeper Dive Into Earnings Drivers

We will be releasing a mining-services special report that includes a deeper dive into the broad categories of earnings drivers for the sector. Our analysis leads us to modestly change our fair value estimates for some companies, including Cimic Group, which we increase by 9% to AUD 24 per share. Our fair value upgrade for Cimic chiefly reflects the favourable impact of public infrastructure spending on Leighton Contractors. This segment generated over 60% of 2015 EBITDA. A more sanguine outlook...

06/12/2016 13 EN

Underlying

CIMIC Group Limited

CIMIC Group is a construction company and the contract miner. Co. provides construction, mining, engineering, public-private partnerships (PPP), and operation and maintenance services to the infrastructure, resources and property markets. Co. comprises the following main segments: construction, contract mining, PPP, engineering, Habtoor Leighton Group, and commercial and residential. Co. delivers its services through several companies: CPB Contractors Pty Ltd, Leighton Asia Limited, Thiess Pty Ltd, Pacific Partnerships, and EIC Activities Pty Ltd. Co. operates across the Australia Pacific, Asia, Middle East and Americas regions in the infrastructure, resources and property markets.

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AU000000CIM7 Australian Securities Exchange Australia

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Mark Taylor

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Fair Value Upgraded 9% to AUD 24 After a Deeper Dive Into Earnings Drivers

With a more favourable environment, CIMIC GROUP improves to Slightly Positive

Monthly LMI Update Independent Investment Research

2020 Asset Allocation and ASX Outlook

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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