ASB has provided FY19 and FY20 EBIT guidance of ~$92m and not less than $105m respectively. The anticipated margin turnaround has occurred faster than we expected, and the level of EBIT we pencilled in for FY21 now looks like being achieved in FY20. ASB is in very strong position, with a record order book, strong demand and visibility, expanded capacity, and growing margins. However, in our view the sharply higher share price more than captures this outlook and solely on valuation grounds we maintain a SELL call on a revised $3.20 valuation (prior $2.75).
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