Australia's IMDEX hits 2-1/2-month-low on analysts' dour forecasts

Imdex

08/05/2024 03:30

(Adds shares, comments from Jarden)
    ** Shares of mining technology company IMDEX  IMD.AX  fall
as much as 7.5% to A$1.850, their lowest since Feb. 19
    ** Citi cuts PT to A$2.00 from A$2.20, while Jarden trims PT
to A$1.95 from A$2.10 and cuts to "neutral" from "overweight"
    ** Citi has also lowered its PT and rating as recently as
May 3
    ** Citi says while Q3 drilling results showed resilience,
there is no sugar-coating volume deterioration and expects
current challenging conditions could flow through to FY25
    ** Jarden expects gross margins and operating leverage to be
hit for rest of 2H24 due to a lower revenue environment
    ** Says higher commodity prices but lower industry activity
make forecasting IMD's earnings outlook challenging
    ** Stock last down 6.3%, taking it to a YTD loss of 0.5% vs
gains of 6.10% as of last close

 (Reporting by Poonam Behura and Himanshi Akhand in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))