ASB +25%: the shipbuilder rallied to a 9-month high today after winning a lucrative US Coast Guard Contract. Austal will build an offshore patrol vessel at their upgraded Alabama facility in what could become a $US3.3b contract if they can secure the remaining 10 ships expected from the order. While the contract is for FY23, Austal said they will now exceed previous guidance to hit at least $107m in FY22. Austal wasn’t expected to be in the mix for this contract, so the win came as a surprise to the market. There are at least another 2 major contracts up for grabs this year as well to further boost their outlook.
MM is bullish ASB and long in the Emerging Companies Portfolio
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