The details around Worley's (ASX:WOR) near-term and medium-term drivers may become important for the market to gain confidence in its growth ambitions, Jefferies said in a note on Wednesday.
The firm reiterated its downgraded guidance, saying it was unlikely to achieve growth in underlying earnings before interest, taxes, and amortization. It is unclear whether the impacts of the conflict in the Middle East are likely to be in the previously outlined Au$30 million to AU$40 million range.
Key areas of focus for the firm's growth ambitions are energy transition materials, power, data centers, nuclear, and industrial water.
Annualized savings are planned to be about 20% above the AU$100 million flagged in the first half, to AU$120 million, with AU$95 million actioned and a further AU$25 million underway.
The investment firm assigned a hold rating on Worley and a price target of AU$11.48 per share.