Construction services company SRG is a high-quality business that looks set to win ~$1bn in contracts this financial year, with cash conversion likely to rise through FY24, helped by its stable of top-quality clients, including the Government, BHP (BHP) and South32 (S32). It’s still cheap, below 70c, making it an excellent opportunity at the smaller end of the market. Plus, a forecasted yield above 6% is a nice bonus.
- We remain bullish on SRG, initially looking for a move to ~85c; we hold SRG in our Emerging Companies Portfolio.
MM is long and bullish on SRG
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