Austal is now clear to proceed with design work for future offshore patrol cutter (OPC) production, now that a protest from a third party regarding the contract award has been withdrawn, explains Ord Minnett.

The likelihood of the protest succeeding was small, according to the broker. The Lighten rating and $2.40 target are unchanged.

Sector: Capital Goods.

Target price is $2.40.Current Price is $2.42. Difference: ($0.02) - (brackets indicate current price is over target). If ASB meets the Ord Minnett target it will return approximately -1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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