Jefferies sees Emeco's 2H as strong despite forecast downgrade

Emeco Holdings

15/06/2023 22:10

** Jefferies sees Emeco Holdings'  EHL.AX   second half to
be "strong" despite a downgrade in earnings
    ** Brokerage has a price target of A$0.85 on EHL, rates
"hold"
    ** The mining services solutions co narrowed its FY23 EBITDA
guidance to A$248 mln ($170.70 mln)-A$252 mln, from A$245
mln-A260 mln earlier
    ** "The small downgrade to the mid-point of guidance  should
come as no surprise as previous guidance had always looked a
stretch given the tough 1H & well-documented weather in 2H" -
Jefferies
    ** Jefferies sees Western Rental to deliver HoH EBITDA and
margin growth on higher margins on reflecting repricing and cost
management initiatives
    ** Four of 5 analysts rate TNE "buy" or higher, one "hold",
their median PT is A$1.10 - Refinitiv data
    ** Stock down ~12% YTD, as of last close
 
($1 = 1.4529 Australian dollars)

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))