Perenti Global's earnings could be set to rebound - Jefferies

Green Plains Partners LP

07/06/2022 22:26

** Brokerage Jefferies says Perenti Global's  PRN.AX 
earnings could be set to rebound with significant COVID-19
disruptions potentially in the past; retains "buy" rating and PT
of A$1.0
    ** The Australian mining services provider on Tuesday
unveiled its FY25 targets, aiming revenue of A$2.5 bln ($1.81
bln) at a 10% earnings before interest, taxes, and amortization
(EBITA) margin  urn:newsml:reuters.com:*:nASX38qThp
    ** Jefferies says simplification is ongoing for PRN with
strong focus on margin expansion and free cash flow generation
rather than growth
    ** PRN also announced new A$520 mln contract at Evolution
Mining's  EVN.AX  Cowal underground gold project in New South
Wales, and a share buy-back program of up to 10% of shares
    ** Jefferies forecasts 10-year mine life for Cowal, which 
indicates there will be plenty of scope for extensions
    ** Brokerage says buy-back should provide near-term support
to PRN's share price 
    ** PRN stock jumped over 10% on Tuesday, its best day since
November 2020
    ** All three analysts covering stock rate it "buy" or
higher; their median PT is A$1.0 – Refinitiv data
    ** PRN stock down 17.30% this year, as of last close
    
    
($1 = 1.3826 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com;))