AusGroup

AusGroup: Stock had a nice move of 11.4% yesterday, as the company announced a A$13m fabrication and construction contract based in Perth after market hours. Note that AusGroup's total order book now stands at A$271m. DMG maintains their BUY call with a TP of $0.755, based on 9x FY13E EPS for a 33% EPS growth projected, and a 1.3x P/B. Relative to Civmec, which is trading at 19x historical EPS and a P/B of 6.4x. The house believes that there is plenty of upside for AusGroup to close these valuation gaps.