The share price of Kentz Corp has recently drifted lower on a wider sector de-rating, but a bullish update highlighted the ongoing solid investment case for the specialist engineer.
IC TIP:
Buy
at
366p
Kentz confirmed that it "continues to trade strongly in line" with the improved guidance delivered last month. As much as $700m (£455m) in new orders and enhancements from existing clients has been achieved so far in 2012, underpinning a $2.5bn order backlog that stretches through to 2015. Of this, two-thirds are reimbursable contracts, reflecting "the continued shift in recent years towards lower-risk" contractual arrangements, according to the group.
