Most Brokers Don’t Expect Multiplex Recovery To Run

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Although Multiplex’s share price has staged a bit of a recovery over recent weeks, few analysts seem to think that this run is likely to continue for long.

Cost recovery from the Cleveland Bridge project was seen by Credit Suisse as a good outcome, but these expectations were already included in forecasts.

As for the UK court ruling on Wembley, UBS says that while it will be positive for sentiment, it is earnings neutral and although Wembley is now fully de-risked, the analysts see the stock as fully valued.

In JP Morgan’s opinion, outstanding risks surrounding the claims recovery process will likely ensure the rally takes a breather from here on.

Macquarie is perhaps the most negative, pointing out that the assets sales made to offset Wembley have reduced the size of the company and this is far from positive.

Of the eight major equity brokers and advisers covering the stock, two rate it positively, three are neutral and three negative.

The average target on the stock is $3.37 and it is currently trading at $3.44.

By Terry Hughes

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