Added JP Morgan rates TSE as Underweight (5) - The broker expects that reduced discretionary spending in the Australian engineering sector and weakness in the Canadian market will put downside pressure on Transfield's earnings. Gearing is still elevated so there's little room for error.
The Underweight rating is retained and the price target is reduced to 96c from $1.00. Overall, the broker thinks there's risks to the downside for FY14 earnings.
TSE Price at posting:
$1.02 Sentiment: None Disclosure: Held
