Caleb Weng, an analyst from PAC Partners, reiterated the Buy rating on Fleetwood Limited (FZS – Research Report). The associated price target is $3.02.
Caleb Weng has given his Buy rating due to a combination of factors influencing Fleetwood Limited’s positive outlook. The transformation of the Smithfield facility towards a production line model has significantly enhanced efficiency and productivity, which is expected to contribute to margin expansion in the medium term. The company’s strong order book and tender pipeline, particularly in the education and government sectors, provide a de-risked outlook for the 2H25 results and beyond.
Furthermore, Fleetwood’s strategic focus on essential government sectors, such as education, social housing, and defense, aligns with high government spending priorities, ensuring a steady demand for its services. The shift to increased production days and the implementation of a split shift for welders indicate better utilization of facilities, while the growing acceptance of modular construction in both public and private sectors supports a robust order book. Additionally, the expected renewal of accommodation contracts and the anticipated shortfall in FIFO beds in regions like Karratha further bolster the company’s long-term prospects.
FZS’s price has also changed moderately for the past six months – from EUR1.160 to EUR1.300, which is a 12.07% increase.