UBS downbeat on Australia's DGL group after HY results miss estimates

DGL

06/03/2024 02:52

** Shares of Australia's DGL Group  DGL.AX  down 3.9%
    ** UBS cuts diversified industrial co's PT after HY results,
reported on Feb. 27, failed to meet market expectations
    ** Cuts PT to A$0.75 from A$0.92, while retaining a
"neutral" rating for the stock
    ** The co reported a HY adjusted EBITDA of A$30 mln ($19.51
mln) vs consensus estimate of A$35 mln
    ** "We reduce our revenue and margin forecasts primarily
driven by the Environment segment" - UBS
    ** UBS forecasts EPS downgrades of 26% and 32% in FY24 and
FY25 estimates, respectively
    ** Three of five analysts rate the stock "buy" and two
"hold"; their median PT is A$0.75 – LSEG data
    ** DGL down 9.3% since Feb. 27, as of last close

($1 = 1.5375 Australian dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))