The Stock of the Day is Downer EDI (DOW)

Downer EDI (DOW) has filed a defence against class action proceedings brought against it for allegedly making misrepresentations and withholding certain information about a maintenance contract in its domestic utilities business in July 2019. The lawsuit was filed on behalf of shareholders who bought downer shares between July 2019 and February 2023, after the company admitted to overstating its pre-tax earnings due to accounting irregularities. Downer has pleaded a defensive third party statement of claim and proportionate liability defence against its auditor, KPMG, which has led KPMG to resign as Downer's auditor. With all this action, what do our experts, David Lane from Ord Minnett and Kai Chen from MPC Markets, make of the company? Kai says that aside from the class action proceedings, the company is looking strong with net profits up and margins increasing. David says that Downer is in a turnaround phase and with new management in place off the back of the recent issues, so long term the company should be well-positioned. Will it be a buy, hold or sell?

Watch the full episode here: https://ausbiz.co/the-call-0403

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Видео The Stock of the Day is Downer EDI (DOW) канала ausbiz