Does MM think Worley Ltd (WOR) is a buy?
Hi James, Would appreciate your thoughts on WOR , and was wondering if it's on your radar and a price target? Cheers
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Answer
Hi Craig,
Worley is a $6.9bn global consulting and advisory business that is set to benefit from the thematic we’ve discussed on numerous occasions at MM, being the energy transition. The is a huge global task that requires the development of large scale renewable energy projects, something that WOR is at the forefront of, hence why the stock has had a good 12 months in a weak market.
While we are not huge fans of this type of consulting business that relies heavily on people (and their expertise) to generate income, there is clearly a big tailwind toward this sector and WOR will benefit if they can manage to retain talent.
At this stage we see better opportunities elsewhere however it certainly has a strong tailwind for it’s business over the coming decade. Interestingly, its not a popular company with the analysts with 36% of the 11 who follow the company calling it a sell.
