PAC Partners analyst Nick Maxwell has maintained their bullish stance on SKS stock, giving a Buy rating on February 19.
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Nick Maxwell has given his Buy rating due to a combination of factors including solid first-half execution and strong growth visibility. SKS reported higher year-on-year revenue with improving profit margins, and management reaffirmed full-year guidance, indicating confidence in achieving targeted revenue and a 10% pre-tax margin. Robust operating cash flow has strengthened the balance sheet, while the company’s ability to secure upfront cash on projects is expected to improve as major data centre contracts progress.
In addition, SKS’s expanding work-on-hand and tender pipeline underpin multi-year earnings, with a significant portion already allocated into FY27, highlighting unusually strong order book visibility. The growing scale of data centre projects, SKS’s established position in key regions, and the strategic Delta Elcom acquisition enhance competitive advantages and market access. On current valuation multiples and expected strong second-half EPS growth, Maxwell views the shares as attractively priced relative to the company’s earnings and cash flow outlook, with project timing seen as a risk to scheduling rather than to underlying demand.
In another report released on February 19, TipRanks – Anthropic also upgraded the stock to a Buy with a A$4.50 price target.