Australia's GenusPlus rises as Bell Potter hikes PT on Humelink East contract

Genusplus

05/12/2023 03:32

** Shares of GenusPlus Group  GNP.AX  edge up 0.8% 
    ** Analysts at Bell Potter see operating earnings before
interest, tax, depreciation and amortisation (EBITDA) margins of
around 7.0-8.5% for GenusPlus across FY24-26 from Humelink East
contract
    ** Brokerage raises target price to A$1.50 per share from
A$1.40; retains "buy" recommendation
    ** Analysts forecast EBITDA margins during contract delivery
to be modestly lower than margins expected to be generated by
co's Power Services segment over FY24-26
    ** Brokerage believes GNP is leveraged to increasing
renewable power, battery energy storage and transmission
infrastructure investment on the east coast of Australia
    ** Bell Potter says Humelink East contract is in part based
on a lower margin but lower risk structure
    ** Stock up 23.9% YTD, as of last close
    

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))