RBC Capital upgrades Worley stock to Outperform on CP2 project revenue

Published 03/09/2025, 08:44
RBC Capital upgrades Worley stock to Outperform on CP2 project revenue

Investing.com - RBC Capital has upgraded Worley Ltd (ASX:WOR) stock rating from Sector Perform to Outperform while raising its price target to AUD18.50 from AUD18.00.

The upgrade comes as RBC anticipates "material revenue impact" for Worley from its work on the CP2 Phase 1 project over the next 36 months, with project activity expected to accelerate toward the end of FY26.

RBC notes that Worley completed the CP2 Phase 1 engineering work around the end of December 2024, which "de-risks Worley’s forward work on the project" compared to situations where engineering work continues during project development.

The $4.2 billion added to Worley’s FY25 Backlog (as of June 30) from the VG CP2 Phase 1 work will become future revenue for the company, according to RBC.

RBC expects this backlog to be "mostly realised over the next 36 months," supporting its more positive outlook on the engineering firm’s prospects.

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