RE: RI OFFER PRICE UNDERVALUED11 Nov 2020 10:59
Totally agree, especially given SP levels when RI was announced. RR are now in a position to ride this out given the vaccine breakthrough and are operating leaner than ever before.
A few potential positive bumps:
1) Vaccine sign off and roll-out
2) Government nuclear power stations project (worth billions if secured)
3) Sale of ITP (improving liquidity)
4) Airport rapid testing and reduced quarantine
4) Surge in holiday bookings due to pent up demand (this will be huge and bookings will start to hit books in the next few months for spring/summer)
And that’s not including all the other contracts in the pipeline and ever improving performance of defence sector.
Only way this significantly drops or fails to recover is if vaccine rollout takes longer than planned or turns out to be a dud (highly unlikely).
As always, DYOR.