Disclaimer: All information on this section is of a general nature.
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Quickstep Holdings (ASX: QHL) – Opportunities for JSF Maintenance
- We note an announcement from the Minister for Defence Industry Christopher Pyne that Australia has been chosen to provide maintenance and other work for components of the Joint Strike Fighter.
- Quickstep - manufacturing JSF fuselage and tail fin parts – is (not surprisingly) listed as one of the Australian companies that will participate in this program.
- The announcement states that the “Turnbull Government has made defence industry a major part of its economic plan” and “it is estimated that this initial work will be worth between A$80m and A$100m in today’s dollars and will create and sustain hundreds, if not thousands, of Australian jobs”.
The above initiative opens up the potential for additional revenue streams relative to our base-case scenario. At current share price levels we believe that QHL offers significant upside potential relative to our target price of A$0.18 per share.